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Consider three bonds with 6.0% coupon rates, all selling at face value. The short-term bond has a maturity of 4 years, the intermediate-term bond has
Consider three bonds with 6.0% coupon rates, all selling at face value. The short-term bond has a maturity of 4 years, the intermediate-term bond has maturity 8 years, and the long-term bond has maturity 30 years. a. What will be the price of each bond if their yields increase to 7.0%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 4 Years 966.13 8 Years $ 30 Years $ Bond price b. What will be the price of each bond if their yields decrease to 5.0%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 4 Years $ 8 Years $ 30 Years $ $ Bond price
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