last 3 digits 676

Both tond AEC and bond XYZ have a coupon rate = the last three digits of your student 10 X.01. (For catmple if thudent iD is 000366638, then 638.01=6.38%6 ). Both bonds are priced at parvatue. Bond ABChas f years to maturity while bond XIZ has 14 years to maturity Assome intially the market rate is the sameas the coupon rate. Answer the followingquestions: Which of the two bonds above has groter interest rate risk? Prove it by sharing by how bond prices wil changefor both bond ABC and for bond X2 when interes ratis change by 1%