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  3. a. a. b. b. bond j has a coupon rate of 3 percent

a. a. b. b. Bond J has a coupon rate of 3 percent and...

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Accounting

a. a. b. b.

Bond J has a coupon rate of 3 percent and Bond K has a coupon rate of 9 percent. Both bonds have 12 years to maturity, make semiannual payments, and have a YTM of 6 percent.

a. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What if rates suddenly fall by 2 percent instead? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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