Bond J has a coupon rate of 5.3 percent. Bond S has a coupon rate of 15.3 percent. Both bonds have eleven years to maturity, make semiannual payments, a par value of $1,000, and have a YTM of 11.6 percent. If interest rates suddenly rise by 3 percent, what is the percentage price change of these bonds?
Percentage change in price
Bond J %
Bond S %
If interest rates suddenly fall by 3 percent instead, what is the percentage price change of these bonds?
Percentage change in price
Bond J %
Bond S %