Question: Problem 10-18 Interest Rate Risk (LO3, CFA4) Bond J has a coupon of 78 percent. Bond K has a coupon of 118 percent. Both bonds

 Problem 10-18 Interest Rate Risk (LO3, CFA4) Bond J has a

Problem 10-18 Interest Rate Risk (LO3, CFA4) Bond J has a coupon of 78 percent. Bond K has a coupon of 118 percent. Both bonds have 12 years to maturity and have a YTM of 87 percent o interest rates suddenly rise by 2.4 percent, what is the percentage once 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) Ain Price Bond Bond K b. If interest rates suddenly fall by 24 percent. What is the percentage price charge of these bonds (Do not found intermediate calculations. Enter your answers as a percent rounded to 2 decimal places) SA in Price Bond Bond

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