URGENT!!!!!!!!!!!!!!

You are given information concerning two issues of bonds, Bond A and Bond B, which have a par value of RM100 per unit. Both bonds pay a coupon of 10% and are payable on a semiannual basis. Bond A has 5 years to maturity, whereas Bond B has 10 years to maturity. Both bonds are currently trading at the par value.

Required:

b) If interest rate suddenly increases by 4%, what is the percentage change in the price of Bond A and Bond B? (3 Marks)

c) If interest rate suddenly drops by 4%, what is the percentage change in the price of Bond A and Bond B? (3 Marks)

d) Discuss briefly on the findings in part (b) and (c). (3 Marks)

Subject: investment analysis