Bluetick1010

Look at it this way
1ST BOND
FV=100
PMT=5
n=3
i=6
2ND BOND
Same as first except now n=2 (12 months closer to maturity)
P1=97.33
P2=98.16

Percent change in price = Change in price/P

The logic behind the price change with no change in interest rates is that as a bond gets closer to redemption its price is pulled toward par value

I think LOL