Problem $7-18$ Interest Rate Risk $($LO$2)$

Bond $J$ is a $4\mathrm{.}2\%$ coupon bond. Bond $K$ is a $10\mathrm{.}2\%$ coupon bond. Both bonds have $15$ years to maturity, make semiannual payments and

have a YTM of $7\mathrm{.}2\%.($Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round the

final answers to $2$ decimal places.$)$

If interest rates suddenly rise by $2\%,$ what is the percentage price change of these bonds?

Percentage change in price of Bond $J$

Percentage change in price of Bond $K$

What if rates suddenly fall by $2\%$ instead?

Percentage change in price of Bond $J$

Percentage change in price of Bond $K$