Solve the below problem:
The relationship between bonds prices and the market interest rate
Q: Consider three bonds that have the same principal value of V = $1,000 and a coupon interest rate of i = 8%, but one matures at 5 years, another at 7 years, and the third at 10 years. Complete the following table by calculating the present value and the percentage change in the present value for each maturity when the market interest rate decreases to i = 5% and when it increases to i = 12%. Consider the relationship between the bond price (the vertical axis) and the market interest rate (the horizontal axis) presented on the following graph.
The graph shows the three bonds with maturities at 5, 7, and 10 years.