This is your first week at a mutual fund as an analyst. Your boss asked you to evaluate the price risk of two 30-year bonds Bond A and Bond B. Bond A has a coupon rate of 4%, while Bond B has a coupon rate of 8%. Both bonds pay their coupons semi-annually

. A) Construct an Excel spreadsheet showing the prices of each of these bonds for yields to maturity ranging from 1% to 15% at intervals of 1%. Column A should show the yield to maturity (ranging from 1% to 15%), and columns B and C should compute the prices of the two bonds (using Excels PV function) at each interest rate.

B) In columns D and E, compute the percentage difference between the bond price and its value when the yield to maturity is 6% (initial yield to maturity) for bonds A and B, respectively [ = {(Price (at current YTM) Price (at initial YTM of 6%)}/ Price (at initial YTM of 6%)].

Face value	$1,000.00
Coupon rate bond A	4.00%
Coupon rate bond B	8.00%
Time	30.00 Years
Initial Yield to Maturity	6.00%