$($a$)$ If interest rates are $10\%,$ what is the current price of each bond?

$($b$)$ Interest rates increase to $12\%$; calculate the new price of each bond.

$($c$)$ Interest rates fall to $8\%$; calculate the new price of each bond.

$($d$)$ Estimate which bond is most sensitive to interest rate changes? Explain how the bond

characteristics determine the sensitivity of a bond $\text{'}s$ price to changes in interest rates.