Question: Problem 10-18 Interest Rate RIS (LUS, CP44) 10 points Bond J has a coupon of 74 percent. Bond K has a coupon of 11.4 percent.

Problem 10-18 Interest Rate RIS (LUS, CP44) 10 points Bond J has a coupon of 74 percent. Bond K has a coupon of 11.4 percent. Both bonds have 12 years to maturity and have a YTM of 78 percent. a. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? (A negative value should be Indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) eBook % A in Price References Bond J Bond K b. If interest rates suddenly falby 2 percent, what is the percentage price change of these bonds? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) SA In Price Bond Bond K

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