Consider a 30-year US Treasury bond. This bond has a 2.875% coupon interest rate, a par value of $100 and the coupon payment frequency is semi-annual. The bond is priced at $92.8480 with a 3.25% yield.

1. Calculate the price for this bond using a 4.25% yield.
2. Calculate the price for this bond using an 2.25% yield.
3. What do you observe about your results in a) and b) compared with the initial price?

You must explain your answers clearly.