Problem 6-18 Interest Rate Risk (LO3) Consider three bonds with 6.80% coupon rates, all making annual coupon payments and all seiling at foce 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 if its yield increases to 7,807 ? Note: Do not round intermediate calculations. Pound your answer to 2 decimal places. b. What will be the price of the 8 -year bond it its yleid increases to 7.808 ? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. What wil be the peice of the 30-year bond if its yield increases 10 7.80N? Note: Do not round intermediate caiculations. Round your answer to 2 decimal places. d. What will be the price of the Avyeor bond if its yield decreases 105.80% ? Note: Do not round intermediate calculations. Round your answer to 2 decimai places. e. What will be the price of the 8yyar bond if its yield decreases to 5.80% ? 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 10 5.807?? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. 9. Comparing your answers to parts (a). (b), and (c), are long-tetm bonds more or less afiected than short.term bonds by a rise in interest fales? h. Comparing your answers to parts (dh, (o), and (W), are long term bonds nore gr less affocted than whort-term bonds by a decline in interest rates? f. What will be the price of the 30 -year bond if its yield decreases to 5.80% ? 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 affect interest rates? h. Comparing your answers to parts (d), (e), and (f), are long-term bonds more or less affecte interest rates