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  3. 3) consider two bonds, all with a par value of $10

3) Consider two bonds, all with a par value of $100 and pays interest semiannually:...

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3) Consider two bonds, all with a par value of $100 and pays interest semiannually: Coupon Rate Coupon Rate Required return rate Maturity A 3% 6% 2 years B 8% 6% 2 years If the market rate increased by 2%, how much will the price change of these bonds, what if the market rate decreased by 2%, what can you conclude from these results? (10 marks)

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