Consider the following two bonds:

Bond A Term to maturity: 10 years from today Face value: $1,000 Annual Coupon rate: 6% Number of payments per year: 2

Bond B Term to maturity: 20 years from today Face value: $1,000 Annual Coupon rate: 9% Number of payments per year: 2

Compute the price for each bond. The current YTM for each bond is 8%. Then make a table comparing the bond prices when the YTM varies from 1%, 2% ... 17%.

Compute duration and modified duration for each bond.

Use (modified) duration to estimate the percentage change of price for each bond if the YTM increases from 8% to 9%.

please show how all calculations are made for an upvote! thanks!

D E F 8% YTM A B 1 Bond A Bond B 2 Coupon rate 6% 9% 3 Maturity 10 20 4 Face value 1,000.00 1,000.00 5 6 Price of Bond A 7 Price of Bond B 8 9 Data table: Effect of market interest rate on bond prices 10 Interest rate Bond A price Bond B price 11 12 0% 13 1% 14 2% 15 3% 16 4% 17 5% 18 6% 19 7% 20 8% 21 9% 22 10% 23 11% 24 12% 25 13% 26 14% 27 15% 28 16% 29 17% 30 31 32 Duration Bond A 33 Modified duration Bond A 34 Duration Bond B 35 Modified duration Bond B 36 37 Duration estimation if market interest rate moves to 9% 38 percentage change of price bond A 39 percentage change of price bond B 40 D E F 8% YTM A B 1 Bond A Bond B 2 Coupon rate 6% 9% 3 Maturity 10 20 4 Face value 1,000.00 1,000.00 5 6 Price of Bond A 7 Price of Bond B 8 9 Data table: Effect of market interest rate on bond prices 10 Interest rate Bond A price Bond B price 11 12 0% 13 1% 14 2% 15 3% 16 4% 17 5% 18 6% 19 7% 20 8% 21 9% 22 10% 23 11% 24 12% 25 13% 26 14% 27 15% 28 16% 29 17% 30 31 32 Duration Bond A 33 Modified duration Bond A 34 Duration Bond B 35 Modified duration Bond B 36 37 Duration estimation if market interest rate moves to 9% 38 percentage change of price bond A 39 percentage change of price bond B 40