4. Answer the below questions for bonds A and B. (a) Calculate the actual price of the bonds for a 100-basis-point increase in interest rates. (b) Using duration, estimate the price of the bonds for a 100-basis-point increase in interest rates. (c) Using both duration and convexity measures, estimate the price of the bonds for a 100 -basis-point increase in interest rates. (d) Comment on the accuracy of your results in parts b and c, and state why one approximation is closer to the actual price than the other. (e) Without working through calculations, indicate whether the duration of the two bonds would be higher or lower if the yield to maturity is 10% rather than 8%. 4. Answer the below questions for bonds A and B. (a) Calculate the actual price of the bonds for a 100-basis-point increase in interest rates. (b) Using duration, estimate the price of the bonds for a 100-basis-point increase in interest rates. (c) Using both duration and convexity measures, estimate the price of the bonds for a 100 -basis-point increase in interest rates. (d) Comment on the accuracy of your results in parts b and c, and state why one approximation is closer to the actual price than the other. (e) Without working through calculations, indicate whether the duration of the two bonds would be higher or lower if the yield to maturity is 10% rather than 8%