8% 10% Bond Price 8% Price @ 10% xchange C-10%, t-10 years $1,135.90 $1,000.00 -12% 5. Current market yields are 8 percent. Please calculate the interest rate risk on three different bonds by comparing their current price to their price at market yields of 10 percent. This problem requires you to calculate the percent change in the 5 price of the bond as interest rates increase from 8% to 10%. 16 17 18 19 20 21 22 23 24 25 26 6. Using the results from the above problem please determine 27 the relationship between a bond's price sensitivity and its 28 29 Coupon rate compare 1st & 2nd) 30 31 Maturity compare 1st & 3rd) 32 33 C-6%, t 10 years $864.10 $750.76 -13% C-10%, t=20 years $1,197.93 $1,000.00 -17% 34