Johnson corporate bonds mature in 16 years, carry semi-annual 6% coupons with a YTM of 8%.

Lee bonds mature in 8 years, carry semi-annual 6% coupons with a YTM of 8%.

The YTM on both bonds suddenly increases.

1. What happens to the price of the Grossman bonds?

Enter Up, if the price increases, Down, if the price decreases, or Same if the price is unchanged.

2. What happens to the price of Lee bonds?

Enter Up, if the price increases, Down, if the price decreases, or Same if the price is unchanged.

3. Will the change in prices be equal for both bonds? Enter Yes or No

4. Explain your answer to #3