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Problem 10-18 Interest Rate Risk (L03, CFA4) Bond J has a coupon of 6.2 percent. Bond K has a coupon of 10.2 percent. Both bonds

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Problem 10-18 Interest Rate Risk (L03, CFA4) Bond J has a coupon of 6.2 percent. Bond K has a coupon of 10.2 percent. Both bonds have 20 years to maturity and have a YTM of 6.9 percent a. If interest rates suddenly rise by 1 percent, what is the percentage price change of these bonds? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) % in Price Bond J Bond K b. If interest rates suddenly fall by 1 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.) % in Price Bond J Bond K

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