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Business, 12.11.2019 01:31 jaimeg13

Consider three bonds with 6.40% 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 7.40%? (do not round intermediate calculations. round your answers to 2 decimal places.)

b. what will be the price of the 8-year bond if its yield increases to 7.40%? (do not round intermediate calculations. round your answers to 2 decimal places.)

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