A. Bond A has the following features: Face value = $1,000, Coupon Rate = 4%, Maturity = 6 years, Yearly coupons The market interest rate is 4.05% If interest rates remain at 4.05%, what will the price of bond A be in year 1?

B.Bond B has the following features:

Face value = $1,000,

Coupon Rate = 4%,

Maturity = 4 years, Yearly coupons

The market interest rate is 5.04%

If interest rates remain at 5.04%, what is the percentage capital gain or loss on bond B if you sell the bond in year 1?

State your answer to 2 decimal places (e.g., 3.56, 0.29)

If there is a capital loss make sure to include a negative sign in your answer (e.g., -0.23)