QUESTION 1 (10 marks) Each of the following bonds has a $100 par value. Bond...
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QUESTION 1 (10 marks) Each of the following bonds has a $100 par value. Bond Coupon interest rate (% p.a.) 4.40 Coupon payment Years to maturity Yield to maturity (%p.a.) 3.60 3.60 20 Alpha Beta Annual Semi-annual 2.15 20 a) Calculate the value of Bond Alpha (2 marks) b) Calculate the value of Bond Beta (3 marks) c) Which bond has the higher interest rate risk and why
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