i got 30 min left could you do it fast thanks Consider three bonds with 5.7% cou

Question

i got 30 min left could you do it fast

thanks

Consider three bonds with 5.7% 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 6.7%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 4 Years 30 Years 8 Years Bond price b. What will be the price of each bond if their yields decrease to 4.7%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 4 Years 8 Years 30 Years Bond price

Explanation / Answer

1st part

a.

b.

2nd part

a. YTM = 3.28%

b. Rate of return = 23.99%

3rd part

a. Interest payments = $99

b. Price = $1,060.20

c. Price will increase by $65.26.

Particulars 4 years 8 years 30 years Bond Price $965.90 $939.59 $872.08

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