Question: Consider the following two bonds: Bond A: - Term to maturity: 1 0 years from today - Face value: $ 1 , 0 0 0

Consider the following two bonds:
Bond A:
- Term to maturity: 10 years from today
- Face value: $1,000
- Annual Coupon rate: 6%
- Number of payments per year: 1
Bond B:
- Term to maturity: 20 years from today
- Face value: $1,000
- Annual Coupon rate: 10%
- Number of payments per year: 1
a) Compute the price for each bond. The current market interest rate for the bond is 8%. Assume that YTM of each bond equals the current market interest rate. Then make a table comparing the bond prices when the YTM varies from 1%,2%...17%.
b) Compute duration and modified duration for each bond.
c) Use (modified) duration to estimate the percentage change of price for each bond if the YTM increases from 8% to 12%.
*please show excel formula

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