Question: Please answer A through E to Q6! All components needed to answer the questions are in the picture. thank you Interest rate risk and bond

Please answer A through E to Q6! All components needed to answer the questions are in the picture. thank you
Please answer A through E to Q6! All components needed to answer

Interest rate risk and bond price changes Apex Corp. has two outstanding bond issues. One issue consists of 5% annual coupon bonds and the other issue consists of zero-coupon bonds. For each bond issue, calculate the bond prices and percentage change in prices when the required rate of return changes from 5% to 6%. a. Ten years to maturity and the required rate of return goes from 5% to 6%. b. Twenty years to maturity and the required rate of return goes from 5% to 6%. c. Ten years to maturity and the required rate of retum goes from 5% to 4%. d. Twenty years to maturity and the required rate of return goes from 5% to 4%. e. Compare and contrast your answers for parts a through d and comment on your observations. a. The price of the 5%-coupon bond with 10 years to maturity and 5% required rate of return is $ (Round to the nearest cent.)

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