Consider three bonds with 5.70% coupon rates, all making annual coupon payments and all selling at face value.

d.(Do not round intermediate calculations. Round your answers to 2 decimal places.)

e.(Do not round intermediate calculations. Round your answers to 2 decimal places.)

e.(Do not round intermediate calculations. Round your answers to 2 decimal places.

g. Comparing your answers to parts (a), (b), and (c), are long-term bonds more or less affected than short-term bonds by a rise in interest rates?

  • More affected
  • Less affected

h. Comparing your answers to parts (d), (e), and (f), are long-term bonds more or less affected than short-term bonds by a decline in interest rates?

  • More affected
  • Less affected

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