Question 2 (13 Marks) Bond Copper and Bond Silver beth have a face value of $1,000, make 9% semi- annual coupons payments, and are priced at par value. Bond Copper has 3 years to maturity, whilst Bond Silver has 22 years to maturity. a. All other things remain the same, if interest rates unexpectedly rise by 3%, what would be the percentage change in the price of Bond Copper and Bond Silver? Show all your calculations. 5 marks b. All other things remain the same, if interest rates unexpectedly fall by 3%, what would be the percentage change in the price of Bond Copper and Bond Silver? Show all your calculations. 5 marks C. Referring to your answers in (a) & (b), what can you tell about the interest rate risk of longer-term bonds? 3 marks