Determining the price of bond

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Reference no: EM13752393

Consider three bonds with 6.6% coupon rates, all selling at face value. The short-term bond has a maturity of 4 years, the intermediate-term bond has maturity 8 years, and the long-term bond has maturity 30 years.

a. What will be the price of each bond if their yields increase to 7.6%?

b. What will be the price of each bond if their yields decrease to 5.6%?

Reference no: EM13752393

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