Without using excel and with real computations please answer this question by showing the different steps and calculations:

18. Interest Rate Risk. Consider three bonds with 8% coupon rates, all making annual coupon payments and all selling at face value. The short-term bond has a maturity of four years, the intermediate-term bond has a maturity of eight years, and the long-term bond has a maturity of 30 years. (L L06-3)

a. What will be the price of the four-year bond if its yield increases to 9%?

b. What will be the price of the eight-year bond if its yield increases to 9%?

c. What will be the price of the 30-year bond if its vield increases to 9%?

d. What will be the price of the four-year bond if its yield decreases to 7%?

e. What will be the price of the eight-year bond if its yield decreases to 7%?

f. What will be the price of the 30-year bond if its yield decreases to 7%?

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?