The par value of each of the following bonds is $1,000. The required rate of return on Treasury securities (for all maturities) is 7 percent. All interest is paid annually. (10 points)

U.S. Treasury bond, 11 percent coupon, 10-year maturity

U.S. Treasury bond, 11 percent coupon, 20-year maturity

U.S. Treasury bond, 6 percent coupon, 10-year maturity

U.S. Treasury bond, 6 percent coupon, 20-year maturity

U.S. Treasury bond, 1 percent coupon, 10-year maturity

U.S. Treasury bond, 1 percent coupon, 20-year maturity

a) Calculate the current price of each bond.

b) If the required rate of return increases to 9 percent, what will be the new price of each bond?

c) Calculate the percentage change in price for each bond. Which bond suffers the greatest percentage price decline? Why? Which suffers the least percentage price decline? Why?