Imediately after she bought bonds interest rates fell to

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

 


Price @ 8%

 

Price @ 7%

 

Percentage Change

 

10-year, 10% annual coupon

 


 


 


10-year zero

 


 


 


5-year zero

 


 


 


30-year zero

 


 


 


$100 perpetuity

 



Reference no: EM13478383

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