“Prices of low coupon bonds are more sensitive to interest rate changes than prices of high coupon bonds”. Discuss the given statement using hypothetical example. PE Corp. bondholders require a return...

“Prices of low coupon bonds are more sensitive to interest rate changes than prices of high
coupon bonds”. Discuss the given statement using hypothetical example.
PE Corp. bondholders require a return of 12% on their investment. The bonds carry a coupon of
7½% and they will mature after 7 years. Find the market price of one of these bonds.