Question: 1. Two $1,000 par value bonds both with 6% coupon rate payable annually are selling at $1,000. Bond A matures in 4 years while bond

1. Two $1,000 par value bonds both with 6% coupon rate

1. Two $1,000 par value bonds both with 6% coupon rate payable annually are selling at $1,000. Bond A matures in 4 years while bond B matures in 12 years. Find the price of the two bonds if the market interest rate goes up or down by 1 percentage point. Which bond is more sensitive to the change in the prevailing interest rate

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