Consider three bonds with $13\mathrm{.}96\%$ coupon rates, all selling at face value. The short$-$term

bond has a maturity of $4$ years, the intermediate$-$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 $15\mathrm{.}4\%?($Do not round

intermediate calculations. Round your answers to $2$ decimal places.$)$

b$.$ What will be the price of each bond if their yields decrease to $11\mathrm{.}9\%?($Do not round

intermediate calculations. Round your answers to $2$ decimal places.$)$

c$.$ Which bond is most sensitive to changes in the interest rates?

$4$ Year

$30$ Year

$8$ Year

They are all the same

d$.$ When interest rates rise then the price of the bond $($Click to select$)$

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

More affected

Less affected

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

More affected

Less affected