A. An investor wants to buy bonds of the company XPSZ. If the nominal interest rate is 4% and the maturity in 4 years, while the nominal value is 1,000, answer the following questions: In case the current interest rate is set at 2%, how much does the investor have to pay to buy such a bond today? ii. If the duration of this bond is equal to 3 years, calculate the change in its price if a) the interest rate in the market increases by 2% and b) decreases by 1%. Comment on the results. B. Let's say the confession of the company DELTA with a total duration of 5 years and a nominal value of 1000. The issuing rate is 8%, while the market rate is 3%. i. Calculate the price of the bond. ii. Following the weighted maturity approach, if the market rate is reduced by 1%, what will be the change in the price of the bond? Comment on the result