Question: 1. ( 6 points) Bond A is a semiannually compounded, zero-coupon bond with a face value of $1,000.00. At issuance, the market interest rate for
1. ( 6 points) Bond A is a semiannually compounded, zero-coupon bond with a face value of $1,000.00. At issuance, the market interest rate for bonds with a similar risk profile was 6.50%. For Bond A, given different bond maturities (Column A), compute Bond A's price at a market interest rate of 6.50%( Column B) and 10.00% (Column C). Next, compute the percent change in Bond A's prices given that the market interest rate increases from 6.50% to 10.00% (Column D). Essentially, Column D is measuring the bond's price sensitivity to interest rate changes
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