13. Suppose that interest rates increase. Assuming all other parameters that impact the price of bonds and stocks remain constant, what would you expect to happen to bond and stock prices? a. Bond prices would increase, and stock prices would decrease. b. Bond prices would decrease, and stock prices would decrease. c. Bond prices would decrease, and stock prices would increase. d. Bond prices would increase, and stock prices would increase. e. Stock prices would increase. More information would be needed to determine the impact on bond prices. 14. Which of the following bonds would have the smallest change in price (in percentage terms) for a given change in interest rates (that is, in yield to maturity) - that is, if the yield to maturity on a bond increases from 8% to 10%, all else constant, which of the following bond prices will change the least (in percentage terms)? a. A $1000 par value bond with a 10% coupon rate (annual payments) that matures in 2 years. b. A $1000 par value bond with a 10% coupon rate (semi-annual payments) that matures in 25 years. c. A $1000 par value bond with a 2% coupon rate (annual payments) that matures in 4 years. d. A $1000 par value bond with a 2% coupon rate (semi-annual payments) that matures in 30 years. e. The bond that changes the most in price percentage terms) cannot be determined from the information given