Problem: Consider three bonds with 6.5% 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.
Q1. What will be the price of each bond if their yields increase to 7.5%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
4 Years 8 Years 30 Years
Bond price = $ $ $
Q2. What will be the price of each bond if their yields decrease to 5.5%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
4 Years 8 Years 30 Years
Bond price = $ $ $