2. Yield value of a price change is defined as the difference change is the difference in the yields calculated at the two price levels. Assuming the par value is $1,000, whats the yield value of a $50 increase of the following two bonds?

(1) A 7-year 4% semiannual bond with YTM 6% and par $1,000

(2) A 7-year 8% semiannual bond with YTM 6% and par $1,000

(3) Which bond has higher percentage price volatility? Comment.