Bond j is a 58 percent coupon bond bond k is a 98 percent


Bond J is a 5.8 percent coupon bond. Bond K is a 9.8 percent coupon bond. Both bonds have 15 years to maturity and have a YTM of 7.6 percent.

a. If interest rates suddenly rise by 2.2 percent, what is the percentage price change of these bonds? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Bond J % Bond K %

b. If interest rates suddenly fall by 2.2 percent, what is the percentage price change of these bonds? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Bond J % Bond K %

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Financial Management: Bond j is a 58 percent coupon bond bond k is a 98 percent
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