Percentage change in the price of bond


A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately after she purchased the bonds, the interest rates fell to 7%. What is the percentage change in the price of each bond after the decline in interest rates? Fill in the following table:

(Each of the following: Price @ 8%, Price @ 7%, Percentage Change)

10 year, 10% annual coupon

10-year zero

5-year zero

30-year zero

$100 perpetuity

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Finance Basics: Percentage change in the price of bond
Reference No:- TGS052453

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