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Bond J is a 5% coupon bond. Bond K is a 10% coupon bond. Both bonds have 6 years to maturity, make se miannual payments,

Bond J is a 5% coupon bond. Bond K is a 10% coupon bond. Both bonds have 6 years to maturity, make se miannual payments, and have a YTM of 7 % . a) If interest rates suddenly rise by 5 % , what is the percentage price change of Bond J? Reanswer assuming rates suddenly fall by 5%. b) If interest rates suddenly rise by 5 % , what is the p ercentage price change of Bond K ? Reanswer assuming rates suddenly fall by 5%.

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