Unformatted text preview: Consider three bonds with 5. 10%6 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 &
years , and the long-term bond has a maturity of 30 years . A. What will be the price of the 4 - year bond if it's
yield increases to 6. 1096 8 - year bond ? 30 - year bond ? B. What will be the price of the 4 year bond if it's yield
decreases to 4. 1096 ? 8 - year ? 30 year ?"...
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- Fall '15
- Finance, annual coupon payments, coupon rates