What will be price of the four-year bond

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Consider three bonds with 5.10% 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 6.10% 8-year bond? 30-year bond? B. What will be the price of the 4 year bond if its yield decreases to 4.10% ? 8- year ? 30 year?

Reference no: EM131964839

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