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Answer the following questions for semi-annual bonds A and B. Bond A 9% 8% Coupon Yield to maturity Maturity (years) Par Price Bond B 7% 8% 3 $100.00 $100.00 (1) Calculate the actual price of the Bonds at the current yield. (ii) Calculate the actual price of the bonds for a 100-basis-point increase in interest rates. (iii) Using duration, estimate the price of the bonds for a 100-basis-point increase in interest rates. (iv) Using both duration and Convexity, estimate the price of the bonds for a 100-basis-point increase in interest rates. None of the above 0 (0) $100.00 and $104.06; (II) $98.2061 and $ 100.0000; (III) $98.1851 and $99.8991; (iv) $98.2064 and $100.0019. 0 (0) $104.69 and $97.38; (I) $100.0000 and $94.8421; (111) $99.8639 and $94.8005; (v) $99.8863 and $94.8968. 0 (0) $104.06 and $100.00; (I) $98.2061 and $100.0000; (111) $98.1851 and $99.8991; (IV) $98.2064 and $100.0019. 0 (0) $100.00 and $104.06; (II) $100.0000 and $98.2061; (III) $98.1851 and $99.8991; (IV) $98.2064 and $100.0019. Answer the following questions for semi-annual bonds A and B. Bond A 9% 8% Coupon Yield to maturity Maturity (years) Par Price Bond B 7% 8% 3 $100.00 $100.00 (1) Calculate the actual price of the Bonds at the current yield. (ii) Calculate the actual price of the bonds for a 100-basis-point increase in interest rates. (iii) Using duration, estimate the price of the bonds for a 100-basis-point increase in interest rates. (iv) Using both duration and Convexity, estimate the price of the bonds for a 100-basis-point increase in interest rates. None of the above 0 (0) $100.00 and $104.06; (II) $98.2061 and $ 100.0000; (III) $98.1851 and $99.8991; (iv) $98.2064 and $100.0019. 0 (0) $104.69 and $97.38; (I) $100.0000 and $94.8421; (111) $99.8639 and $94.8005; (v) $99.8863 and $94.8968. 0 (0) $104.06 and $100.00; (I) $98.2061 and $100.0000; (111) $98.1851 and $99.8991; (IV) $98.2064 and $100.0019. 0 (0) $100.00 and $104.06; (II) $100.0000 and $98.2061; (III) $98.1851 and $99.8991; (IV) $98.2064 and $100.0019

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