Consider three bonds with 670 coupon rates all making, Ask an Expert

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Consider three bonds with 6.70% 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.

1. What will be the price of the 8-year bond if its yield decreases to 5.70%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

2. What will be the price of the 30-year bond if its yield decreases to 5.70%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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Financial Management, Finance

Category:- Financial Management
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