Immediately after she purchased them interest rates fell


An investor purchased the following 5 bonds. Each of them had a face value of $1,000 and 10% yield to maturity on the purchase day. Immediately after she purchased them, interest rates fell and each then had a new YTM of 5%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table. Round your answers to two decimal places.

Price @ 10% Price @ 5% Percentage Change
10-year, 10% annual coupon 1. 2. 3.
10-year zero 4. 5. 6.
5-year zero 7. 8. 9.
30-year zero 10. 11. 12.
$100 perpetuity 13. 14. 15.

 

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Finance Basics: Immediately after she purchased them interest rates fell
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