4. The AAA rated company just issued bond that has 3 years to maturity with coupon rate of 10%, which is traded at YTM of 14%. (35 points) A. Does it trade below or above the par? Why (provide computations) (3 points) B. What is the duration of this bond? (compute and interpret) (2 points + 3 points) C. What is duration of the similar bond, except for coupon rate-20%. Suggest (5 points) first than compute (2 points) D. If the interest rates in the economy are to increase, ownership of which of this bonds would have more risk for the holder? With 10% coupon rate or 20% coupon rate (holding other things E. If the initial bond would have semi-annual payments what would be the duration? Provide F. If the initial bond was issued half a year ago, what would be the duration? How risk profile G. If payments are annual, but in the form of annuity, what would be duration of the instrument? equal)? (5 points) intuition of the directional change +compute (4 points + 2 points) changed? (4 points) (5 points)