Consider three bonds with 5.40% 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 6.40%?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

B)What will be the price of the 8-year bond if its yield increases to 6.40%?

Note: 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%?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

D)What will be the price of the 4-year bond if its yield decreases to 4.40%?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

E)What will be the price of the 8-year bond if its yield decreases to 4.40%?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

F)What will be the price of the 30-year bond if its yield decreases to 4.40%?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

G)Comparing your answers to parts (a), (b), and (c), are long-term bonds more or less affected than short-term bonds by a rise in interest rates?

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?