1. ABC Inc., and XYZ Inc., both have 7% coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value of $1000. The ABC Inc., bond has 4 years to maturity, whereas the XYZ Inc., bond 25 years maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? If interest rates were to suddenly fall by 2% instead, what would the percentage change in the price of these bonds be then? Illustrate your answers by graphing bond prices versus YTM. What does this problem tell you about the interest rate risk of longer-term bonds