An investor purchased the following four bonds. The market interest (discount) rate was 8% on the purchase day. Immediately after the investor purchased them, the discount rate fell to 7%. a. What is the percentage change in price for each bond after the decline in discount rate? Fill in the following table: Bond Price @ 8% discount rate, Bond Price@ 7% discount rate, and Price change (%)

10 year, 10% coupon

10-year, zero coupon

5-year, 1% coupon

30-year, 5% coupon

b. Compare the price risk (interest rate sensitivity) of the four bonds.