Compute the duration for bond C, and rank the bonds on the basis of their volatility. The current rate of interest is 8 percent, so the prices of bonds A and B $1,000 and $1,268, respectively. Confirm your ranking by calculating the percentage change in the price of each bond when interest rates rise from 8 to 12 percent. (Bond A's and B's prices become $774 and $1,000, respectively.)