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Questionj1 The table below provides information about bonds A and B, both of which make semiannual coupon payments, with payments occurring at the end of

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Questionj1 The table below provides information about bonds A and B, both of which make semiannual coupon payments, with payments occurring at the end of each semiannual period. The YTM is stated as an APR, following the industry convention. Par value Time to maturity Coupon rate Bond A $1,000 Bond B 1,0006 years YTM 10% 10% 4 years 8.00% 4.00% a) Compute the current market price for each bond. b) Suppose the yield-to-maturity (YTM) for each bond decreases by 1 percentage point from 10% to 9% in response to a change in market interest rates. Calculate the new price for each bond and find the percentage change in the bond price in response to this decrease in YTM

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