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2. Yield value of a price change is defined as the change in yield for $X change in price. Assuming the par value is $1,000,

2. Yield value of a price change is defined as the change in yield for $X change in price. Assuming the par value is $1,000, what is the yield value of a $25 decrease of the following two bonds? (4 points) (1) A 7-year 5% semiannual bond with initial YTM 7.5%. (3 points) (2) A 7-year 10% semiannual bond with initial YTM 7.5%. (3 points) Which bond has higher percentage price volatility? Comment. (1 point)

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