Bond A: 8-year, 8% annual coupon bond at a YTM of 7%

bond B: 8-year bond, 9% annual coupon bond at a YTM of 10%

The two bonds were issued 5 years ago.

The current price of bond A is (a).... , hence it sells at a (b)...... The duration of bond A is (c)... assuming a 20bp shock(increase) in the yield duration rule approximates a price of (d) of (e)%. When yield increases by 20bp the duration rule approximates the price of the bond to decline by R(f)...