Liddy Products, Inc. just issued 10-year, 8% coupon bonds at par. Outstanding bonds of

Limbaugh Corp., Liddy's closest competitor, have a maturity of 10 years and are viewed by

investors as being of about the same risk as the Liddy bonds, but carry a 5% coupon. What

would Limbaughs bonds be selling for currently? What is the current yield of the Limbaugh

bond issue? Assume semi-annual coupons. Without any calculations, if the yield to maturity

for these bonds were to increase by 50 basis points, which of the two companys bond prices

would change more?