Consider the following two bonds: Table 1: Two Bonds Bond A Bond B Term Face Value 1000 1000 Coupon 5% annual 3.5% semi-annual 10 years 20 years 1. Assume the market interest rate is 3.25%. Determine the price of each bond using excel functions. 2. Repeat #1 but setup a table of cash flows like in class and discount to find the prices of each bond. 3. Make a table comparing the bond prices when the market interest rate varies from 0% a 1%, ..., 5%, 6%, ..., 12%. Graph both bond prices relative to market interest rates on the X-axis. 4. Which bond looks more price sensitive to changes in interest rates? Explain your answe using the graph from #2. Consider the following two bonds: Table 1: Two Bonds Bond A Bond B Term Face Value 1000 1000 Coupon 5% annual 3.5% semi-annual 10 years 20 years 1. Assume the market interest rate is 3.25%. Determine the price of each bond using excel functions. 2. Repeat #1 but setup a table of cash flows like in class and discount to find the prices of each bond. 3. Make a table comparing the bond prices when the market interest rate varies from 0% a 1%, ..., 5%, 6%, ..., 12%. Graph both bond prices relative to market interest rates on the X-axis. 4. Which bond looks more price sensitive to changes in interest rates? Explain your answe using the graph from #2