Hi! I would like a step by step solution to this question. Thank you.

Consider three bonds with 8% coupon rates, all making annual coupon payments and all selling at face value. The short-term bond has a maturity of 4 years, the inter- mediate-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 9%?

b.What will be the price of each bond if their yields decrease to 7%?

c.Are long-term bonds more or less affected than short-term bonds by a rise in interest rates?

d.Would you expect long-term bonds to be more or less affected by a fall in interest rates?