General Electric has two bonds outstanding. Both issues have the same credit rating, a face value of $1,000 and a coupon rate of 4%. Coupons are paid twice a year. Bond A matures in 1 year, while bond B matures in 20 years. The market interest rate for similar bonds is 11%.

FIND PART 1 & 2 FOR THE FOLLOWING:

Part 1 | Attempt 1/6 for 9 pts. By how much will the price of bond A fall if yields increase to 13% immediately? 1+ decimals Submit Part 2 Attempt 1/6 for 9 pts. By how much will the price of bond B fall if yields increase to 13% immediately (in absolute dollars)? 0+ decimals Submit