Question: 3. Consider the following two bonds both having a par value of $1,000. - 30-year bond that pays a 5% annual coupon - 2-year bond

3. Consider the following two bonds both having a par value of $1,000. - 30-year bond that pays a 5% annual coupon - 2-year bond that pays a 5% annual coupon A) What is the price of each bond assuming the market interest rate = 5%? B) What is the price of each bond if the market interest rate decreases to 4%? C) What do you notice about the percent change in each bond's price for the same decline in interest rate

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