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Bond J has a coupon rate of 7 percent and Bond K has a coupon rate of 13 percent. Both have 12 years to maturity,

Bond J has a coupon rate of 7 percent and Bond K has a coupon rate of 13 percent. Both have 12 years to maturity, both make semiannual payments, and both have a YTM of 10 percent.

a.) If interest rates suddenly rise by 2 percent, what's the percentage price change of these bonds?

b.) If rates suddenly fall by 2 percent instead?

Fill in the table with answers.

a.) Bond J ???? %
a.) Bond K ???? %
b.) Bond J ???? %
b.) Bond K ???? %

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