(d) Which of the following bonds should an investor select, if the market interest rate were projected to fall by 50 basis point over the next six months? (Calculation for the percentage change in bond prices is required). (6 Marks)

(1) JK bond with a Macaulay duration of 9.5 years that's currently being priced to yield 10%.

(2) Super bond with a Macaulay duration of 8.7 years that's currently being priced to yield 5.8%.