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Question(s) / Instruction(s):

Bond J is a 3 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 16 years to maturity, make semiannual payments, and have a YTM of 6 percent.

 

If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? (Negative amount should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)))


What if rates suddenly fall by 2 percent instead? (Round your answers to 2 decimal places. (e.g., 32.16))

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