Bond value and changing required returns Bond $x$ has a coupon rate of $11\%,$ and Bond Y pays a $4\%$ annual coupon. Assume that both bonds have a $$1,000-$par$-$value. Bot bonds have $16$ years to maturity. The yield to maturity for both bonds is now $11\%.$

a$.$ If the interest rate rises by $2\%,$ by what percentage will the price of the two bonds change?

b$.$ If the interest rate drops by $2\%,$ by what percentage will the price of the two bonds change?

c$.$ Which bond has more interest rate risk? Why?