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?