QUESTION THREE Lackson PLC and Hardy Corp. both have 8 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Lackson PLC bond has 2 years to maturity, whereas the Hardy Corp. bond has 15 years to maturity.  If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?                                                                                            If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then?                                                  What does this problem tell you about the interest rate risk of longer-term bonds?

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