1. ) Laurel Inc. and Hardy Corp. both have 6.5% coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value of $1,000. The Laurel Inc. bond has 4 years to maturity, whereas the Hardy Corp. bond has 23 years to maturity. If interest rates suddenly rise by 2%, what is the percentage change in the price of these bonds? If interest rates suddenly fall by 2%, what is the percentage change in the price of these bonds? What does this problem tell you about the interest rate risk of longer-term bonds?