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A bond trader purchased each of the following bonds at yield to maturity of 8% per annum. Immediately after she purchased the bonds, interest rates
A bond trader purchased each of the following bonds at yield to maturity of 8% per annum. Immediately after she purchased the bonds, interest rates fell to 7% per annum. What is the percentage change in the price of each bond after the decline in interest rates?
Fill in the following table:
Price @ 8% | Price @ 7% | Percentage Change | |
---|---|---|---|
10-year, 10% annual coupon | |||
10-year zero coupon | |||
5-year zero coupon | |||
30-year zero coupon | |||
Perpetuity, $100 annual coupon |
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