Milner's Tools has a 9-year, 7 percent annual coupon bond outstanding with a $1,000 par value. Carter's Tools has a 10-year, 6 percent annual coupon bond with a $1,000 par value. Both bonds currently have a yield to maturity of 6.5 percent. If the market yield increases to 6.75 percent,

(1) What is the percentage change in Milners bond value?

(2) What is the percentage change in Carters bond value?

(3) Whose bond has higher interest rate risk? Why?