Bond J has a coupon rate of 6 percent. Bond K has a coupon rate of 10 percent. Both bonds have 10 years to maturity, make semiannual payments, and have a YTM of 7 percent.

If interest rates suddenly rise by 2 percent, what is the percentage price change of Bond J?

A. -11.35%

B. -13.35%

C. -12.35%

D. -13.33%

If interest rates suddenly rise by 2 percent, what is the percentage price change of Bond K?

A. -10.21%

B. 28.04%

C. -12.21%

D. -12.19%

If interest rates suddenly fall by 2 percent, what is the percentage price change of Bond J?

A. 19.51%

B. -13.37%

C. 16.04%

D. 16.02%

If interest rates suddenly fall by 2 percent, what is the percentage price change of Bond K?

A. 14.43%

B. 14.55%

C. 7.50%

D. -12.23%