Problem 6-18 Interest Rate Risk (LO3) Consider three bonds with 6.40% 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 d. What will be the price of the 4 -year bond if its yield decreases to 5.40% ? Note: 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 5.40% ? Note: 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 5.40% ? Note: 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 iong-term bonds more or less affected than short-term bonds by a decline in interest rates? Problem 6-18 Interest Rate Risk (LO3) Consider three bonds with 6.40% 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 d. What will be the price of the 4 -year bond if its yield decreases to 5.40% ? Note: 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 5.40% ? Note: 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 5.40% ? Note: 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 iong-term bonds more or less affected than short-term bonds by a decline in interest rates