## [answered] Bond J is a 4 percent coupon bond. Bond K is a 11 percent c

 Bond J is a 4 percent coupon bond. Bond K is a 11 percent coupon bond. Both bonds have 8 years to maturity, make semiannual payments, and have a YTM of 7 percent.

 Requirement 1: (a) If interest rates suddenly rise by 2 percent, what is the percentage price change of Bond J? ? ? ? (Click to select)-10.15%14.21%-11.15%-12.15%-12.13%
 (b) If interest rates suddenly rise by 2 percent, what is the percentage price change of Bond K? ? ? ? (Click to select)28.14%12.08%-10.43%-8.43%-10.41%
 Requirement 2: (a) If interest rates suddenly fall by 2 percent, what is the percentage price change of Bond J? ? ? ? (Click to select)-12.17%-28.09%14.19%14.17%7.53%
 (b) If interest rates suddenly fall by 2 percent, what is the percentage price change of Bond K? ? ? ? (Click to select)-39.17%11.94%12.23%12.06%-10.45%

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This question was answered on: Sep 18, 2020

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