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1. The Percentage change in the price of bond A is _%? The Percentage change in the price of bond B is _%? The Percentage

1.The Percentage change in the price of bond A is _%?

The Percentage change in the price of bond B is _%?

The Percentage change in the price of bond C is _%?

The Percentage change in the price of bond D is _%?

2.

Consider the following bonds: What is the percentage change in the price of each bond if its yield to maturity falls from 6.4% to 5.4% ? a. What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with an AAA rating? b. What is the credit spread on AAA-rated corporate bonds? c. What is the credit spread on B-rated corporate bonds? d. How does the credit spread change with the bond rating? Why? Consider the following bonds: What is the percentage change in the price of each bond if its yield to maturity falls from 6.4% to 5.4% ? a. What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with an AAA rating? b. What is the credit spread on AAA-rated corporate bonds? c. What is the credit spread on B-rated corporate bonds? d. How does the credit spread change with the bond rating? Why

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