Question: Problem 10-18 Interest Rate Risk (LO3, CFA4) Bond J has a coupon of 6.4 percent. Bond K has a coupon of 10.4 percent. Both bonds

Problem 10-18 Interest Rate Risk (LO3, CFA4) Bond J has a coupon of 6.4 percent. Bond K has a coupon of 10.4 percent.

Problem 10-18 Interest Rate Risk (LO3, CFA4) Bond J has a coupon of 6.4 percent. Bond K has a coupon of 10.4 percent. Both bonds have 20 years to maturity and have a YTM of 7.8 percent. a. If interest rates suddenly rise by 1.2 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.) %A in Price Bond J Bond K

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