Question: Question 4.116 points Both Bond A and Bond B have 8 percent coupons, make semiannual payments, and are priced at par value. Bond A has

Question 4.116 points Both Bond A and Bond B have 8 percent coupons, make semiannual payments, and are priced at par value. Bond A has 2 years to maturity, whereas Bond Bhas 11 years to maturity (a) If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond A? | points Answer (a) Justify your answer: (b) If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond B? 13 points Answer (b): Justify your answer: (c) If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond A be then? 13 points Answer (c): Justify your answer: (d) If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond B be then? 13 points Answer (d) Justify your answer: (c) What relation is illustrated? Interpret your results 14 points

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