Bond price increases in YTM Relative to the price of a long term bond, the price of a short-term bond is more sensitive to the change in interest rate. It is possible that the price of a Zero-coupon bond is larger than its face value. 5 pts JE - Question 24 You are saving for the college education of your two children. They are two years apart in age; one will begin college 14 years from today and the other will begin 16 years from today. You estimate your children's college expenses to be $41,000 per year per child, payable at the beginning of each school year. The annual interest rate is 7.1 percent. Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college. How much money must you deposit in an account each year to fund your children's education? Edit View Insert Format Tools Table v T? 2 12pt A Paragraph BIU