Bond j is a 3 percent coupon bond bond k is a 9 percent, Ask an Expert

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Bond J is a 3 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 15 years to maturity, make semi-annual payments, and have an YTM of 6 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? What does this problem tell you about the interest rate risk of lower-coupon bonds?

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