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Question 13 (1 point) An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10.50% annual coupon.

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Question 13 (1 point) An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10.50% annual coupon. Bond Alpha matures in 5 years, while Bond Beta matures in 1 year. a) What will the value of each bond be if the going interest rate is 19%? b) Which bond will have the greater percentage change in price if interest rates increase by 1 percentage point? a) Alpha = $740.10; Beta = $928.57 b) Alpha will have a greater percentage change in price. a) Alpha = $928.57; Beta = $740.10 b) Beta will have a greater percentage change in price. a) Alpha $740.10; Beta = $928.57 b) Beta will have a greater percentage change in price. a) Alpha $928.57; Beta = $1,000.00 b) Alpha will have a greater percentage change in price. a) Alpha = $1,000.00; Beta = $740.10 b) Alpha will have a greater percentage change in price. Drevotr Dam

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