Find the current market price of a 20-year, 9% coupon rate bond with par

value of $1,000, if interest is paid annually and if current market rates are

(a) 11% or (b) 7%. What are the current market prices if everything is the

same except the bond has only (1) 10 years to maturity, or (2) 2 years to

maturity? What can we say about the relative influence of changing market

interest rates on the market prices of short-term versus long-term bonds?

Can you speculate on why this is so?

Use PV function to solve.