Two firms are each offering investors the opportunity to invest in their corporate bonds The bonds have 3 years to maturity and are available at par value. The face value of each bond is $1,000 and they pay annual coupon payments. Details are below Coupon Per annum 6.00% 6.20% Description Callable Call Price Firm A Non-callable NA Callable (Immediately) Firm B $1020 Required: a) Suppose that market interest rates decline by 80 basis points (0.8%). Contrast the effect of this decline on the price of each bond. Explain in detail. State all assumptions (8 marks) b) Should you prefer Firm A or Firm B bonds when rates are expected to rise or to fall? Explain your choice. State all assumptions