You are considering the following two bonds. Both bonds are trading at a YTM of 17%: Long-High: Maturity 8 years, 15% coupon payable semi-annually, FV $1000 Short-Lo: Maturity 5 years, 2.5% coupon...

Extracted text: You are considering the following two bonds. Both bonds are trading at a YTM of 17%: Long-High: Maturity 8 years, 15% coupon payable semi-annually, FV $1000 Short-Lo: Maturity 5 years, 2.5% coupon payable semi-annually, FV $1000 A. Calculate the interest rate risk of each bond. Long-High: Price 1 Price 2 Interest rate risk Short-Lo Price 1 Price 2 Interest rate risk B. Calculate the duration of each bond (you may copy-paste your work from Excel here). C. Compare your results from Part A and Part B. Do they confirm or contradict each other? Explain in a few words. II II|| IL||