Whereas the hardy corp. bond has 15 years to maturity. if, Ask an Expert

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Laurel, Inc., and Hardy Corp. both have 10 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, Inc., bond has 5 years to maturity, whereas the Hardy Corp. bond has 15 years to maturity. If interest rates suddenly fall by 2 percent, the percentage change in the price of Bonds Laurel, Inc., and Hardy Corp. is ___________ percent and 3.7 percent, respectively.

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