Question $4$: $(3$ points$)$

YYY Inc. issued $12\%$ semi$-$annual coupon bond with maturity of $8$ years and face value

$$1,000.$ What is the price you are willing to pay for YYY Inc. bond if the yield to maturity is

$10\%?$

$($a$)$ What would the $\%$ change in price for YYY$,$ if the yield decreases to $9\%.$

ZZZ Inc. issued a similar bond $($same time to maturity, face value and yield at $10\%$ as in YYY$)$

but with a higher coupon rate.

$($b$)$ Will the $\%$ change in price for ZZZ higher or lower than YYY if the yield decreases to

$9\%?$