Problem $6-20$ Interest Rate Risk $[$lO $2]$

Bond J has a coupon rate of $5\mathrm{.}2$ percent. Bond K has a coupon rate of $15\mathrm{.}2$ percent. Both bonds have ten years to maturity, a par value of $$1,000,$ and a YTM of $11\mathrm{.}4$ percent, and both make semiannual payments.

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

Note: A negative answer 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$.,32\mathrm{.}16.$

b$.$ If interest rates suddenly fall by $2$ percent instead, what is the percentage change in the price of these bonds?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

$\backslash$table$[[,$Bond J$,$Bond K$],[$a$.$ Percentage change in price,,$\%,,\%$