Question: compare how short term and long term bond values react differently to same interest rate change. In particular, determine two different maturities for two separate

compare how short term and long term bond values react differently to same interest rate change. In particular, determine two different maturities for two separate bonds: one short term and the other long term. Also, determine all the other relevant terms shared by these two bonds: the face value, the coupon interest rate together with payment frequency, and the discount rate or market interest rate used. Calculate bond values. Then let the discount rate or market interest rate increase by 1%, and recalculate bond values. Compare the changes of the values of each bond. Which one has a bigger change?

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