+ V Question 5 - Homework: Val x Mail - John Williams - Outloc X L Inbox X X | myLU x Lu Topic: Discussion Thread: Val: x ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmgh... @ X D / * 1Q : Homework: Valuing Bonds Assignment Saved Help Save & Exit Submit Check my work 5 Consider three bonds with 5.40% 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. a. What will be the price of the 4-year bond if its yield increases to 6.40%? (Do not round intermediate calculations. Round your points answer to 2 decimal places.) b. What will be the price of the 8-year bond if its yield increases to 6.40%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Book c. What will be the price of the 30-year bond if its yield increases to 6.40%? (Do not round intermediate calculations. Round your Hint answer to 2 decimal places.) d. What will be the price of the 4-year bond if its yield decreases to 4.40%? (Do not round intermediate calculations. Round your Print answer to 2 decimal places.) e. What will be the price of the 8-year bond if its yield decreases to 4.40%? (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 4.40%? (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 long-term bonds more or less affected than short-term bonds by a decline in interest rates? a Bond price b. Bond price c Bond price d. Bond price e Bond price Graw