Yield value of a price change is defined as the

difference change is the difference in

the yields calculated at the two price levels. What

s the yield value of a $20 increase of

the following two bonds with par value $1,000? (4 p

oints)

(1) A 7-year 4% semiannual bond selling at par;

(2) A 7-year 8% semiannual bond selling at par.

Which bond has higher percentage price volatility?