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Each of the following bonds has a $100 par value. Bond Coupen interest rate Coupen payment Years to maturity Yeild to maturity x 10 Annual

Each of the following bonds has a $100 par value.

Bond Coupen interest rate Coupen payment Years to maturity Yeild to maturity

x 10 Annual 10 9

y 8 Semi annual 10 9

Calculate the value of each bond

Which bond, X or Y, has the higher interest rate risk and why?

Notes: This one is suppose to be 15 marks ques just now a tutor did it in just 2/3 steps can I please get the whole process thanks!!

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