1: Valuation of Debts (10 Marks) The CEO of Cameron Mining Limited is considering two different bonds. The first bond (i.e. Bond A) is a 3% coupon bond. The second bond (i.e. Bond B) is a 9% coupon bond. Both bonds are currently priced at par ($1,000). They have 10 years to maturity and make half-yearly coupon payments. Answer the following questions: (a) If interest rates fall by 1%, what are the new bond prices for Bond A and B respectively? (4 marks) (b) What is the percentage price change for each of these bonds? (4 marks) (c) What can you conclude based on your analysis of the price changes for Bond A and Bond B? (2 marks)