Bond Price and Interest Rate . Try the following exercises: 1. What is the price for a 30-year zero-coupon bond when the market interest rate for this kind of bond is 6%? What would the price be if the market interest rate rises to 7%? When interest rate rises from 6% to 7%, would the price rise or fall? How much (in percentage) would the bond price change? 2. Repeat this question for a 30-year 5 % coupon bond. How much (in percentage) would the bond price change when the interest rate rises from 6% to 7%? 3. Repeat this question for a 2-year 5 % coupon bond. How much (in percentage) would the bond price change when the interest rate rises from 6% to 7%? For all these questions, please use semi-annual compounding. 25