Question: Does anyone could help with these two questions. I'I 13 5 a Suppose that there are two very similar bonds. They both have the same

Does anyone could help with these two questions.

I'I 13 5 a Suppose that there are two very similar bonds. They both have the same face value, time to maturity, provide the same yield to maturity and pay a coupon every three months. However, bond A pays a higher coupon rate than bond B. Suppose you are long Bond A for the equivalent of 1 million USD and short Bond B for that same amount of dollars. Suppose further that interest rates increase by 5 bps. What would happen to your MTM prots? AI My MTM prots will increase A My MTM prots will decrease A My MTM prots will remain unchanged since I am holding the bonds to maturity AI There is not information to answer this question 10 5 12 5 9 Fill in the blank: The is a good approximation of the change the price of a bond would have to a small change in interest rates. O DV01 Yield to Maturity Duration None of the above

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