Bond price from A to F ?

Problem 6-19 Interest Rate Risk (LO3) Check my work DOL Consider three bonds with 5 40% coupon rates, all making annual coupon payments and all setting a face value. The short term bond has a maturity of 4 years the intermediate-term bond has a maturity of 8 years, and the long term bond has a maturity of 30 years a. What will be the price of the 4-year bond it is yield increases to 6 40%? Do not round Intermediate calculations. Round your answer to 2 decimal places) b. What will be the pnce of the year Dondits yeld increases to 6.40%? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) c. What will be the price of the 30-year bond if its yield increases to 6.40%? Do not round Intermediate calculations, Round your answer to 2 decimal places.) d. What will be the price of the 4-year bond its yield decreases to 4 40% (Do not round Intermediate calculations, Round your answer to 2 decimal places e. What will be the price of the year bond it is yield decseaces to 4 40%? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) 1. What will be the price of the 30-year bond yield decreases to 44057 (Do not round intermediate calculations. Round your answer to 2 decimal places) 9. Comparing your answers to parts and are long term bonds more or less atfected than short-term bonds by amse in interest rates! h. Comparing your answers to partside and I are long term bonds more or less affected than short term bonds by a decine in interest rates a Bond price Bond price Bond price IC