Finance 401 Group Exercise 2-Bonds Note: Each group turns in one copy of group exercise on Canvas. Please write down your name and the names of the group members who participate in the exercise on your assignment. You are required to use the Excel Spreadsheet to do quantitative analysis and write a memo in Word. Please turn in a hard copy of your work on Crawfall started to work as an intern in the fixed-income department of the AAA Mutual Funds on January 2, 2018. Her supervisor, Janet Zemo, assigned her to analyze interest rate risk associated with investment in bonds issued by Superior Energy. Ms. Zemo provided Lisa with the information about four bonds issued by Superior Energy. The four bonds are named as AB, CD EF, and GH Lisa Bond AB Bond CD Bond EF 110 7.0 Bond GH Price on January 1, 2018 115 96.5 103 Annual coupon rate 7.0% 196 5.9% 1231/20401/31/2036 12/31/2018 1/31/2018 $1,000$1,000 $1,000 Maturity date Par value $1,000 Coupon payment frequency Semiannual Semiannual Semiannual Semiannual Rating Then, Ms. Zemo assigned Lisa to do the following research jobs based on the information 1) Calculate the yield to maturity for the four bonds on January 2, 2018, respectively 2) Based on the macroeconomic data released by the National Bureau of Economic Research, Ms. Zemo expected that inflation rate will increase by 1%. Hence, she expected that yield to maturity for the four bonds will increase by 1% too. She asked Lisa to calculate prices of the four bonds if the yield to maturity increases by 1%, respectively. 3) List the bond prices of the four bonds on January 1, 2018 and the bond prices of the four bonds calculated in 2) when the yield to maturity increases by 1% in a table. Lisa next calculated the percentage price change of the four bonds 4) Since Bond AB and Bond CD have the same coupon rates, Ms. Zemo asked Lisa to compare which bond price will drop more when the yield to maturity increases by 1%? Since Bond EF and Bond GH have the same maturity date, Ms. Zemo asked Lisa to compare which bond price will drop more when the yield to maturity increases by 1%? )Based on the resolts in throgh ),Lisa needed to tepot to Ms.Demo about uhch bonds have higher intero Ma.Demo about uhen bonds have higher intero tate nsk and and why