Which bond has higher percentage price volatility

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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?

(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?

Reference no: EM132064878

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