Consider two bonds, a 3-year bond paying an annual coupon of 6.20% and a 10-year bond also with an annual coupon of 6.20%. Both currently sell at a face value of $1,000. Now suppose interest rates rise to 10%.

a) What is the new price of the 3-year bonds?

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

b)What is the new price of the 10-year bonds?

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

c) Which bonds are more sensitive to a change in interest rates- long term or short term bonds?