Q No. 1: ABC Private Limited is a growing organization in the industry and is showing progress in terms of capturing new markets in the industry. ABC have observed the interest rate increases from 10% to 12% suddenly. Find the present values of the two bonds given below both before and after the change.Both the bonds have same coupon rate of 11%.

a) Bond 1 has a maturity of 5 years and bond 2 has a maturity of 15 years.