Question: Consider three bonds with 6.30% coupon rate , all making annual coupon payment and all selling at face value . The short term bond has

Consider three bonds with 6.30% coupon rate , all making annual coupon payment 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 yield increases to 7.30% ( Do not round intermediate calculation. Round your answer to 2 decimal places) b. What will be the price of the 8 year bond if its yield increases of 7.30% ( Do not round intermediate calculation. 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% d. What will be the price of the 4 year bond it its yield decrease to 5.30% e. What will be the price of the 8 year bond if its yield decrease to 5.40% f. What will be the price of the 30 year bond if its yield decreases to 5.30% g. Comparing your answer to part (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 answer to part (d) (e) and (f) are long term bonds more or less affected than short term bonds by a decline in interest rates

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