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A bond trader purchased each of the following bonds at a yield to maturity of 11%. Immediately after she purchased the bonds, interest rates fell
A bond trader purchased each of the following bonds at a yield to maturity of 11%. Immediately after she purchased the bonds, interest rates fell to 9%. What is the percentage change in the price of each bond after the decline in interest rates? Fill in the following table:
Price @ 11% Price @ 9% Percentage Change
10-year, 10% annual coupon |
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10-year zero |
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5-year zero |
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30-year zero |
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Perpetuity, $100 annual coupon |
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