You have two bonds: Bond A and Bond B are both 10-year bonds with semi-annual payments (and pars of $1,000). For Bond A, the coupon rate is 6% for the first 5 years and 8% for the next 5 years; whereas for Bond B, the coupon rate is 8% for the first 5 years and 6% for the next 5 years. The current market interest rate is 7%.

a. Determine the intrinsic values of the two bonds.

b. Determine the (Macaulay) durations of the two bonds.

c. Discuss how the coupon rates affect the durations of the bonds.

Please handwrite out answers. Thank you for your help