Consider the following two semiannual coupon bonds with par value $1,000:

Bond A: a 4% 8-year bond

Bond B: a 10% 8-year bond

1. What is the dollar price change of Bond A when the yield increases from 6% to 8%?

2. What is the dollar price change of Bond B when the yield increases from 6% to 8%?

Note: You should be able to observe that for a given term to maturity and initial yield, the higher the coupon rate, the greater the dollar price change