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Can someone answer these problems? Consider three bonds with 5.10% coupon rates, all making annual coupon payments and all selling at face value. The short-term
Can someone answer these problems?
Consider three bonds with 5.10% coupon rates, all making annual coupon payments and all selling at 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 if its yield increases to 610%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Bond price b. what will bethe price of the 8-year bond if its yield increases to 610%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Bond price c. what will be the price of the 30-year bond if its yield increases to 610%? (Do not round intermediate calculations. Round you answers to 2 decimal places.) Bond price d, what will be the price of the 4-year bond if its yield decreases to 4.10%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Bond price e. what will be the price of the 8-year bond if its yield decreases to 410%? (D not round intermediate calculations. Round your answers to 2 decimal places.) Bond price f, what will be the price of the 30-year bond if its yield decreases to 410%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Bond price g. Compering your answers to parts (o). (b), and (c), are long-term bonds more or less affected than short-term bonds by o rise in interest rates O More affected Less affected h. Comparing your answers to parts (d), (e), and (f), are long-term bonds more or less affected than short-term bonds by a decline in interest rates? O More affected O Less affected
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