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11. Problem 4-16 (Interest Rate Sensitivity) eBook Interest Rate Sensitivity A bond trader purchased each of the following bonds with a face value of
11. Problem 4-16 (Interest Rate Sensitivity) eBook Interest Rate Sensitivity A bond trader purchased each of the following bonds with a face value of $1,000 at a yield to maturity of 8%. 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. Do not round Intermediate calculations. Round the monetary values to the nearest cent and percentage values to two decimal places. Enter your answers as positive values. 10-year, 10% annual coupon 10-year zero 5-year zero 30-year zero Perpetuity, $100 annual coupon Price @ 8% Price 5% $ Percentage Change % Grade it Now Save & Continue Continue without saving
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