Please show work without using PVIFA, please reshow how to solve this problem

Question: Please help. I would appreciate it if you can solve this by using All formulas, showing all work,...

Please help. I would appreciate it if you can solve this by using All formulas, showing all work, do not skip simple steps. Please do NOT use excel. Please keep it organized and use bold font for formulas.

Bond J has a coupon rate of 5 percent and Bond K has a coupon rate of 11 percent.

Both bonds have 14 years to maturity, make semiannual payments, and have a YTM of 8 percent.

If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?

(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Percentage change in price of Bond J %

Percentage change in price of Bond K %

What if rates suddenly fall by 2 percent instead?

(Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Percentage change in price of Bond J %

Percentage change in price of Bond K %

Bond J:

Face Value = $1,000

Annual Coupon Rate = 5% Semiannual Coupon Rate = 2.50% Semiannual Coupon = 2.50% * $1,000 Semiannual Coupon = $25

Time to Maturity = 14 years Semiannual Period to Maturity = 28

If YTM is 8%:

Annual YTM = 8% Semiannual YTM = 4%

Price of Bond = $25 * PVIFA(4%, 28) + $1,000 * PVIF(4%, 28) Price of Bond = $25 * (1 - (1/1.04)^28) / 0.04 + $1,000 / 1.04^28 Price of Bond = $750.05

If YTM increases by 2:

Annual YTM = 10% Semiannual YTM = 5%

Price of Bond = $25 * PVIFA(5%, 28) + $1,000 * PVIF(5%, 28) Price of Bond = $25 * (1 - (1/1.05)^28) / 0.05 + $1,000 / 1.05^28 Price of Bond = $627.55

Percentage Change in Price = ($627.55 - $750.05) / $750.05 Percentage Change in Price = -16.33%

If YTM decreases by 2:

Annual YTM = 6% Semiannual YTM = 3%

Price of Bond = $25 * PVIFA(3%, 28) + $1,000 * PVIF(3%, 28) Price of Bond = $25 * (1 - (1/1.03)^28) / 0.03 + $1,000 / 1.03^28 Price of Bond = $906.18

Percentage Change in Price = ($906.18 - $750.05) / $750.05 Percentage Change in Price = 20.82%

Bond K:

Face Value = $1,000

Annual Coupon Rate = 11% Semiannual Coupon Rate = 5.50% Semiannual Coupon = 5.50% * $1,000 Semiannual Coupon = $55

Time to Maturity = 14 years Semiannual Period to Maturity = 28

If YTM is 8%:

Annual YTM = 8% Semiannual YTM = 4%

Price of Bond = $55 * PVIFA(4%, 28) + $1,000 * PVIF(4%, 28) Price of Bond = $55 * (1 - (1/1.04)^28) / 0.04 + $1,000 / 1.04^28 Price of Bond = $1,249.95

If YTM increases by 2:

Annual YTM = 10% Semiannual YTM = 5%

Price of Bond = $55 * PVIFA(5%, 28) + $1,000 * PVIF(5%, 28) Price of Bond = $55 * (1 - (1/1.05)^28) / 0.05 + $1,000 / 1.05^28 Price of Bond = $1,074.49

Percentage Change in Price = ($1,074.49 - $1,249.95) / $1,249.95 Percentage Change in Price = -14.04%

If YTM decreases by 2:

Annual YTM = 6% Semiannual YTM = 3%

Price of Bond = $55 * PVIFA(3%, 28) + $1,000 * PVIF(3%, 28) Price of Bond = $55 * (1 - (1/1.03)^28) / 0.03 + $1,000 / 1.03^28 Price of Bond = $1,469.10

Percentage Change in Price = ($1,469.10 - $1,249.95) / $1,249.95 Percentage Change in Price = 17.53%