Bond J has a coupon rate of 5.1 percent. Bond S has a coupon rate of 15.1 percent. Both bonds have nine years to maturity, make semi annual payments, and have a YTM of 11.2 percent.
If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds?
If interest rates suddenly fall by 3 percent instead, what is the percentage change in the price of these bonds?