Bond j is a 3 percent coupon bond bond k is a 10 percent, Ask an Expert

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Bond J is a 3 percent coupon bond. Bond K is a 10 percent coupon bond. Both bonds have 9 years to maturity, make semiannual payments, and have a YTM of 6 percent. Requirement 1: (a) If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond J? (b) If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond K? Requirement 2: (a) If interest rates suddenly fall by 4 percent, what is the percentage price change of Bond J? (b) If interest rates suddenly fall by 4 percent, what is the percentage price change of Bond K?

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