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Bond J is a 4 percent coupon bond. Bond K is a 10 percent coupon bond. Both bonds have 18 years to maturity, make semiannual

Bond J is a 4 percent coupon bond. Bond K is a 10 percent coupon bond. Both bonds have 18 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 these bonds?

Percentage change in price of Bond J %
Percentage change in price of Bond K %

What if rates suddenly fall by 2 percent instead?

Percentage change in price of Bond J %
Percentage change in price of Bond K %

Ignore the 3.15 %

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