123 113 Question 7 114 Assume that coupon Interest payments are made semiannually and that per value is $1,000 for both bonds. 10 points 115 116 112 Bond A Ilonde Coupon rate 425 118 4.25 Years to maturity 119 1 21 Required return 6.69N 120 6.69 121 a. Calculate the values of Blond A and Bond B. 122 Bond A's dollar value (rounded to nearest cent 124 Bond B's dollar value frounded to nearest cent) 125 126 b. Recalculate the bonds' values of the required rate of return changes to 8.38 122 Bond A's dollar value (rounded to nearest cent) 129 Bond B's dollar value (rounded to nearest cent) 130 131 c. Calculate the change in bond value in S) due to the change in the required rate of return. Enter negative number for value decrease 132 133 $ Change in value of Bond A (rounded to nearest cent) 134 Change in value of Bond rounded to nearest cent) 135 136 d. Why does Bond change by more than Bond A for the same interest rate change answer check is not provided for this question 127 128