Question 4 On June 30, 2020, William wants to invest in a newly issued 5-year AAA corporate bonds as shown below : Coupon Price 100 Callable Noncallable Call Price N/A 8% Description Amex due June 30, 2025 Goggle due June 30, 2025 8.4% 100 Callable 101 Required: (a) Suppose that market interest rates goes down by 100 basis points (i.e. 1%). Differentiate the effect of this decline on the price of each bond. (6 marks) (b) Should William prefer the Goggle over the Amex bond when rates are expected to increase or decrease ? (4 marks)