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Q7 (10 points): Bond A: 2-year, 8% coupon bond with YTM payments. Bond B: Zero coupon bond maturing in 1.8852 years ar, 8% coupon bond with YTM = 10% making semiannual coupon a) Find duration and modified duration for both bonds with semian b) Suppose the annual interest rate increases by 0.010, th much? The zero-coupon bond price drops by how much? en for both bonds with semiannual periods. st rate increases by 0.01%, the coupon bond price falls by how Q7 (10 points): Bond A: 2-year, 8% coupon bond with YTM payments. Bond B: Zero coupon bond maturing in 1.8852 years ar, 8% coupon bond with YTM = 10% making semiannual coupon a) Find duration and modified duration for both bonds with semian b) Suppose the annual interest rate increases by 0.010, th much? The zero-coupon bond price drops by how much? en for both bonds with semiannual periods. st rate increases by 0.01%, the coupon bond price falls by how