Question: please answer a) By showing your calculations, justify which bond will be more sensitive to interest rate changes: Bond A Bond B Par value E.1,000

please answer

please answer a) By showing your calculations,
a) By showing your calculations, justify which bond will be more sensitive to interest rate changes: Bond A Bond B Par value E.1,000 $1,000 Term to maturity 5 years 5 years Annual coupon rate 4% 5% Frequency of coupon payment per year Twice Once Yield of bonds in similar risk class 4% 8% (10 marks)

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