3. After recently receiving a bonus, you have decided to add some bonds to your investment portfolio. You have narrowed your choice down to the following bonds (assume semiannual payments):

	Bond A	Bond B
Settlement Date	2/15/2010	2/15/2010
Maturity Date	4/15/2014	6/15/2025
Coupon Rate	5.00%	9.50%
Market Price	$890	$1,040
Face Value	$1,000	$1,000
Required Return	7.25%	9.25%

C. Which bond would you rather own if you expect market rates to fall by 2% across the maturity spectrum? What if rates will rise by 2%? Why? Show your formulas and answers in the excel sheet, this needs to be an excel formula that returns the answers given below.

	% Change in Price
Change in Yields	Bond A	Bond B
-2.00%	11.31%	15.96
2.00%	-3.86	-16.04