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10 Marks Question 8 Threw has recently issued two bonds with semiannual payments of R40. One bond has maturity of 2 years and the other

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10 Marks Question 8 Threw has recently issued two bonds with semiannual payments of R40. One bond has maturity of 2 years and the other one has a maturity of 10 years. Both bonds currently sell at par, R1,000 with a yield-to-maturity (YTM) of 8 percent. Required: 8.1. Calculate the price of each bond if the YTM drops to 6 percent. 8.2. Calculate the price of each bond if the YTM rises to 10 percent. 8.3. Comment on the pattern observed as a result of these changes

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