Steve owns a $4\%8-$year bond and a $5\%8-$year bond and both bonds are yeiding $3$ K $.$ Subserly, eterest rates change and the yeid of both bonds increases to $4$ K $.$ How would the price of each bond change?

Both tonds increase in price, but the higher coupon bond increases by more

Both bonds increase in price, but the lower coupon bond increases by more

fout bonds docrease in price, but the higher eoupon bond decreseen by mere

Both bonds decrease in price, but the lower coupon bond decreases by more