About the interest rate sensitivity

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Interest Rate Sensitivity

A bond trader purchased each of the following bonds at a yield to maturity of 10%. 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 @ 10% Price @ 5% Percentage Change 10-year; 10% annual coupon % 10-year zero % 5-year zero % 30-year zero % $100 perpetuity

Reference no: EM13873488

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