Question: Problem 624 Interest Rate Risk (LO3) Consider two bonds, a 3-year bond paying an annual coupon of 6.50% and a 10 -year bond also with

Problem 624 Interest Rate Risk (LO3) 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% : 0. What is the new price of the 3 -year bonds? Note: Do not round intermediate calculations. Round your onswer to 2 decimal places. b. What is the new price of the 10-year bonds? Note: Do not round intermediate calculotions, Round your answer to 2 decimol places. c. Which bonds ate more sensitive to a change in interest rates? Long-term bonds Shortherm bonds

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