What will be the price of each bond

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Reference no: EM132066516

Consider three bonds with 5.8% coupon rates, all making annual coupon payments and all selling at a face value of $1,000. 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 6.8%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

4 Years 8 Years 30 Years ]

Bond price $ $ $

b. What will be the price of each bond if their yields decrease to 4.8%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

4 Years 8 Years 30 Years

Bond price $ $ $

Reference no: EM132066516

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