Suppose that you are given the following information about two callable bonds that can be called immediately:

Estimated Percentage Change in Price If Interest Rates Change by

!100 basis points

"100 basis points Bond ABC "5% !8%

Bond XYZ "22% !16%

You are told that both of these bonds have the same maturity and that the coupon rate of one bond is 7% and of the other is 13%. Suppose that the yield curve for both issuers is flat at 8%. Based on this information, which bond is the lower coupon bond and which is the higher coupon bond? Explain why.