Consider two bonds, a $3-$year bond paying an annual coupon of $7\mathrm{.}00\%$ and a $10-$year bond also with an annual coupon of $7\mathrm{.}00\%.$ Both currently sell at a face value of $$1,000.$ Now suppose interest rates rise to $12\%.$

What is the new price of the $3-$year bonds?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

What is the new price of the $10-$year bonds?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Which bonds are more sensitive to a change in interest rates?

multiple choice

Long$-$term bonds

Short$-$term bonds