Task:
Interest Rate Sensitivity
A bond trader purchased each of the following bonds at a yield to maturity of 9%. Immediately after she purchased the bonds, interest rates fell to 5%. What is the percentage change in the price of each bond after the decline in interest rates? Fill in the following table. Round your answers to two decimal places.
Price @ 9% Price @ 5% Percentage Change
10-year, 10% annual coupon $ $ %
10-year zero %
5-year zero %
30-year zero %
$100 perpetuity %