Both Bill and Ted have 8% coupon bonds that make semiannual payments and are priced at par. Bill's bond has 3 years to maturity and Ted's bond has 20 years to maturity. If current interest rates fall by 3%,

a)what is the percentage change in the price of Bill's Bond?

15.2271%

8.0000%

8.2622%

10.0000%

b) what is the percentage change in the price of Ted's Bond?

8.0000%

51.4773%

10.0000%

37.6542%