General Electric has two bonds outstanding. Both issues have the same credit rating, a face value of $$1,000$ and a coupon rate of $6\%.$ Coupons are paid twice a year. Bond A matures in $1$ year, while bond B matures in $27$ years.

The market interest rate for similar bonds is $11\%.$

Attempt $1/10$ for $10$ pts$.$

Part $1$

By how much will the price of bond A fall if yields increase to $14\%$ immediately $($in absolute dollars$)?$

$1+$ decimals

Attempt $1/10$ for $10$ pts$.$

Part $2$

By how much will the price of bond B fall if yields increase to $14\%$ immediately $($in absolute dollars$)?$