Question: apter 14 Help Consider two bonds, a 3-year bond paying an annual coupon of 9%, and a 20-year bond, also with an annual coupon of

apter 14 Help Consider two bonds, a 3-year bond paying an annual coupon of 9%, and a 20-year bond, also with an annual coupon of 9%. Both bonds currently sell at par value. Now suppose that interest rates rise and the yield to maturity of the two bonds increases to 13%. a. What is the new price of the 3-year bond? (Round your answer to 2 decimal places.) Sints Price of the 3-year bond Book Print References b. What is the new price of the 20-year bond? (Round yor answer to 2 decimal places.) Price of the 20-year bond c. Do longer or shorter maturity bonds appear to be more sensitive to changes in interest rates?! O Longer

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