Question: Problem 6-19 Interest Rate Risk (LO3) 10 DO Consider three bonds with 500 coupon rates, al making annual coupon payments and all selling ac face
Problem 6-19 Interest Rate Risk (LO3) 10 DO Consider three bonds with 500 coupon rates, al making annual coupon payments and all selling ac 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 What will be the price of the 4-year bond its yield increases to 60017 (Do not round Intermediate calculations. Round your answer to 2 decimal places.) b. What we be the price of the year bond if its yield increases to 6.0097 (Do not found intermediate calculation Round your answer to 2 decimal places.) What will be the price of the 30-year bond it to yield increases to 6.00%? (Do not round intermediate calculations. Round your answer to 2 decimat places.) d. What will be the price of the 4-year bond if it yield decreases to 400ST (Do not round intermediate calculations. Round your answer to 2 decimal places) e. What will be the price of the year bond if its yield decreases to 40017 (Do not round Intermediate calculations. Round your answer to 2 decimal places) 1. What will be the price of the 30 year bond if its yield decreases to 4.00N (Do not round Intermediate calculations. Round your answer to 2 decimal places) 9. Comparing your answers to parts and care long-term bonds more or less affected than short term bonds by arise in Interest ratest . Compading your answers to parts and it) we long term bonds more or less affected than short term bonds by a decline in Interest rates
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