TTesla, Inc., has two bonds outstanding in the market. Both Bond X and Bond Y have 8 percent coupons, make semiannual payments, and are priced at par value. Bond X has 20 years to maturity, whereas Bond Y has 5 years to maturity.

Questions: 1. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of the two bonds?

2. If rates were to suddenly fall by 2 percent instead, what would be the

percentage change in the price of the two bonds?

please fill out chart and show working

Input
Bond X:
Coupon rate	8.0%
Face value	100
Coupons per year	2
Years to maturity	20
Bond Y:
Coupon rate	8.0%
Face value	100
Coupons per year	2
Years to maturity	5
Change in interest rate	2%
Calculation & Output
Question 7
After a rise in interest rate
New YTM
New Price of Bond X
New Price of Bond Y
% change in Bond X
% change in Bond Y
Question 8
After a fall in interest rate
New YTM
New Price of Bond X
New Price of Bond Y
% change in Bond X
% change in Bond Y
Question 9
YTM	Price of Bond X	Price of Bond Y
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%