Question: problem: 4 . Interest Rate Risk Bond J has a coupon rate of 3 % . Bond K has a coupon rate of 9 %

problem: 4. Interest Rate Risk Bond J has a coupon rate of 3%. Bond K has a coupon rate of 9%. Both bonds have 18 years to maturity, make semiannual payments, and have a YTM of 7%. a. If interest rates suddenly rise by 2%, what is the percentage price change of these bonds? b. What if rates suddenly fall by 2% instead?

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