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7 - 7 INTEREST RATE SENSITIVITY An investor purchased the following five bonds. Each bond had a par value of $ 1 , 0 0

7 - 7

INTEREST RATE SENSITIVITY An investor purchased the following five bonds. Each bond had a par value of $

1, 000

and an

8 %

yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of

7 % .

What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table:

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