17. Interest Rate Risk (LO3, CFA4) Both Bond A and Bond B have 6 percent coupons and are priced at par value. Bond A has 5 years to maturity, while Bond B has 15 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in price of Bond A? Of Bond B? If rates were to suddenly fall by 2 percent instead, what would the percentage change in price of Bond A be now? Of Bond B? Illustrate your answers by graphing bond prices versus YTM. What does this problem tell you about the interest rate risk of longer-term bonds?