1.) Calculate and discuss the price and difference between the following two bonds: NOTE: Pick your own rate and compare.
A.) Bond A has a coupon rate of 9.5% and maturity of 12 years and Bond B has a coupon rate of 6% and maturity of 15 years
B.) Using duration what are the prices of the two bonds when interest rates increase by 200 basis points. By a 75-basis point increase? Why?
Please show all calculations