Bond S is a 6 percent coupon bond. Bond T is a 10 percent coupon bond. Both bonds have 15 years to maturity, make semiannual payments, and have a yield-to-maturity of 8 percent. If interest rates suddenly rise by 1 percent.

What will the percentage change in the price of Bond S and T be?

Based on the results in part a, explain why the percentage change in price in one bond is larger than the other.