Question: please use formula to solve the question, excel caculation is not allowed. Please briefly explain each step. Interest Rate Risk Insook, Inc., and Hankyu Corp.

please use formula to solve the question, excel caculation is not

please use formula to solve the question, excel caculation is not allowed. Please briefly explain each step.

Interest Rate Risk Insook, Inc., and Hankyu Corp. both have 7 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Insook, Inc., bond has 2 years to maturity, whereas the Hankyu Corp. bond has 15 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then? Illustrate your answers by graphing bond prices versus YTM. What does this problem tell you about the interest rate risk of longer-term bonds

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