Question: I JUST WANT THE CORRECT ANSWER Bond J has a coupon rate of 5 percent. Bond K has a coupon rate of 9 percent. Both

I JUST WANT THE CORRECT ANSWER

Bond J has a coupon rate of 5 percent. Bond K has a coupon rate of 9 percent. Both bonds have 10 years to maturity, make semiannual payments, and have a YTM of 7 percent. If interest rates suddenly rise by 3 percent, what is the percentage price change of Bond J? multiple choice

-19.73%

-18.75%

-19.75%

-17.75%

If interest rates suddenly fall by 3 percent, what is the percentage price change of Bond K? multiple choice

-17.92%

23.23%

23.35%

-5.23%

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