A. An investor wishes to choose between two alternative bond investments (bond A and bond B). Both bonds have a face value of 1,000 with an 11% coupon payable on an annual basis, with bond A maturing in 5 years and bond B maturing in 15 years. Calculate the prices of the two bonds if the required yield is j) 8%, ii) 11%, iii) 14%, briefly comment on the relationship between bond prices and changes in the required yields and suggest the preferred investment bond if an investor wishes to minimize the risk of possible interest rate changes.