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Bond J is a 5 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 15 years to maturity and have
Bond J is a 5 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 15 years to maturity and have a YTM of 5.2 percent. a. If interest rates suddenly rise by 1.4 percent, what is the percentage price change of these bonds? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%"sign in your response.) b. If interest rates suddenly fall by 1.4 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
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