You bought one unit each of the following two bonds: Annual Coupon for both bonds.

• Bond A has a face value of $5,000, 7% coupon, 25 years to maturity. It is yielding 5%.
• Bond B has a face value of $5,000, 7% coupon, 2 years to maturity. It is yielding 5%.

If the market rates increase by 2%, what will be the percentage change in the price of bonds A and B? What does the result tell you? Write a brief commentary.