answer then the first one

An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10.50% annual coupon. Bond Alpha matures in 5 years, while Bond Beta matures in 1 year. a) What will the value of each bond be if the going interest rate is 7%? b) Which bond will have the greater percentage change in price if interest rates increase by 1 percentage point? a) Alpha = $1,000.00; Beta = $1,143.51 b) Alpha will have a greater percentage change in price. - a) Alpha = $1,032.71; Beta = $1,000.00 b) Alpha will have a greater percentage change in price. a) Alpha = $1,143.51; Beta = $1,032.71 b) Alpha will have a greater percentage change in price. a) Alpha - $1,032.71; Beta - $1,143.51 b) Beta will have a greater percentage change in price a) Alpha - $1,143.51; Beta - $1,032.71 b) Beta will have a greater percentage change in price It is now January 1, 2014, and you are considering the purchase of an outstanding bond that was issued on January 1, 2010. It has a 8.40% annual coupon and it matures on December 31, 2029. There is a call protection until December 31, 2016 after which time it can be called at 104% of par. Interest rates have declined since it was issued; and it is now selling at 105% of par. a) What is the yield to maturity? b) What is the yield to call? a) 8.40%: b) 7.71% 317.84%; b) 7.71% 217.71%; b) 7.84% a) 7.84%: b) 8.03% 18.40%; ) 8.03%