Question: Please include the answers and how to solve Consider two bonds, a 3-year bond paying an annual coupon of 6.50% and a 10 -year bond

Please include the answers and how to solve

Consider two bonds, a 3-year bond paying an annual coupon of 6.50% and a 10 -year bond also with an annual coupon of 6.50%. Both currently sell at a face value of $1,000. Now suppose interest rates rise to 9%. a. What is the new price of the 3 -year bonds? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the new price of the 10-year bonds? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Which bonds are more sensitive to a change in interest rates? Long-term bonds Short-term bonds

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