Interest Rate Risk. Consider two bonds, a $3-$year bond paying an

annual coupon of $5\%$ and a $10-$year bond also with an annual coupon

of $5\%.$ Both currently sell at face value. Now suppose interest

rates rise to $10\%.($LO$6-3)$ a$.$ What is the new price of the $3-$year

bonds? b$.$ What is the new price of the $10-$year bonds? c$.$ Do you

conclude that long$-$term or short$-$term bonds are more sensitive to a

change in interest rates?