Question II Consider the following two bonds. Bond A Term to maturity: 10 years from today Face value: $1,000 Coupon rate: 10%, annual coupons Bond B Term to maturity: 20 years from today Face value: $1,000 Coupon rate: 10%, annual coupons Repayment of face value: On last coupon date Repayment of face value: On last coupon date (1). Assume discount rate is 10%. Use the PV function to calculate the prices for these two bonds. These two bonds are selling at a discount, par or premium? (2 points) (2). Make a Data Table to compare the bond prices when discount rate varies from 1% to 20%, incrementing by 1%. (3 points) Note: If you use a formula/function to calculate the bond price for each discount rate, you will only get half of the 3 points. (3). Is the longer-term bond's price more sensitive to changes in discount rate? Make a connected scatter chart with both series of bond prices calculated above in the same chart (1 point) and explain in a textbox (2 points, no need to talk about duration, just compare the slopes). Some Helpful Hints: