Consider the following two assets: Asset A and Asset B. Both have identical total cash flows. Bond B CFt 600 - Bond A CF 200 300 400 500 600 500 3 4 5 400 300 200 a) Which should be more sensitive to changes in interest rates? Why? Discuss without using information from the subsequent questions. (0.5 page limit, 4 marks) b) The market interest rate is 10% p.a. What is the value of Asset A and Asset B? What is the duration of Asset A and Asset B? (0.5 page limit, 6 marks) c) Say market interest rates were to increase by 2% Calculate the new value of both assets. Is the result in line with your findings in a) and b)? (0.5 page limit, 4 marks)