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Question II Consider the following two bonds. (1). Assume discount rate is 7%. Use the PV function to calculate the prices for these two bonds.

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Question II Consider the following two bonds. (1). Assume discount rate is 7%. Use the PV function to calculate the prices for these two bonds. Are these bonds sold at a discount, par or premium? Write your answer in a text box. ( 2 points) (2). Make a Data Table to compare these two bond prices when discount rate varies from 1\% to 20%, incrementing by 1%. ( 2 points) Note: If you use a formula/function to calculate the bond price for each discount rate, you will only get half of the 2 points. (3). Is the longer-term bond's price more sensitive to changes in discount rate? Make a connected scatter chart with both series of bond prices calculated above in the same chart and explain in a textbox ( 2 points, no need to talk about duration, just compare the slopes)

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