Interest Rates Sensitivity: An investor purchased the following 5 bonds. Each bond had a par value of $1,000.00 and an 8% yield to maturityon the purchase day. Immediately after the investor purchased...


Interest Rates Sensitivity:


An investor purchased the following 5 bonds. Each bond had a par value of $1,000.00 and an 8% yield to maturityon the purchase day.


Immediately after the investor purchased the bonds , interest rates fell, and each bond had a new YTM of 7%.


What is the percentage change in price for each bond after the decline in interest rates?


Fill in the following table:


10-YR, 10% annual coupon price, 8% price and 7% percentage change.


10-year zero


5-year zero


30 year zero


$100.00 Perpetuity



Jun 08, 2022
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