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6-16 Abond trader purchased each of the following bonds at a yield to maturity of 9%. Immediately Interest Rate after she purchased the bonds, interest
6-16 Abond trader purchased each of the following bonds at a yield to maturity of 9%. Immediately Interest Rate after she purchased the bonds, interest rates fell to 8%. What is the percentage change in the Sensitivity price of each bond after the decline in interest rates? Fill in the following table: (Assume semiannual compounding.) Price @ 9% Price @ 8% Percentage Change 10-year, 10% coupon 10-year zero 20-year zero
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