Both Bond Bill and Bond Ted have 12.6 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 6 years to maturity, whereas Bond Ted has 23 years to maturity.

Requirement 1:

If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

Requirement 2:

If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of these bonds?