Question: 2. There are two bonds that a bond fund manager is considering. Bond A has a coupon rate of 5% and Bond B has a

2. There are two bonds that a bond fund manager is considering. Bond A has a coupon rate of 5% and Bond B has a coupon rate of 8%. Both bonds are paying interest semi-annually, have a par value of $1,000 and have a maturity of 20 years. If the current YTM for both bonds is 6%, what is their current price? If the YTM changed to 7%, what would be their new current price? Which bond is more elastic to the change in interest rate? cool

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