BVA Inc. has two bond issues outstanding, each with a par value of $1,000. Information about each

Question:

BVA Inc. has two bond issues outstanding, each with a of $1,000. Information about each is listed below. Suppose market interest rates rise 1 percentage point across the yield curve. What will be the change in price for each of the bonds? Does this tell us anything about the relationship between initial yield to and interest rate risk?
Bond A: 12 years to pays a 7% coupon, and the market interest rate on this BB-rated bond is is 12.36%.
Bond B: 12 years to pays a 7% coupon, and the market interest rate on this A-rated bond is 10.25%.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...