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X Lu Homework: Valuing Bonds Assig Question 5 - Homework: Valuing x + heducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheprodu Idwi... Shalimar Weather -... G Google ( https://searchsafe.n.. New Tab Bookmarks

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X Lu Homework: Valuing Bonds Assig Question 5 - Homework: Valuing x + heducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheprodu Idwi... Shalimar Weather -... G Google ( https://searchsafe.n.. New Tab Bookmarks Valuing Bonds Assignment i Saved Consider three bonds with 6.30% 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 7.30%? (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 7.30%? (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 7.30%? (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 5.30%? (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 5.30%? (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 5.30%? (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? a. Bond price b . Bond price C . Bond price d . Bond price e . Bond price

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