Question
A bond trader purchased each of the following bonds at a yield to maturity of 9%. Immediately after she purchased the bonds, interest rates fell
A bond trader purchased each of the following bonds at a yield to maturity of 9%. Immediately after she purchased the bonds, interest rates fell to 7%. What is the percentage change in the price of each bond after the decline in interest rates? Fill in the following table. Round your answers to two decimal places.
| Price @ 9% | Price @ 7% | Percentage Change | |
| 10-year, 10% annual coupon | $ | $ | % |
| 10-year zero | % | ||
| 5-year zero | % | ||
| 30-year zero | % | ||
| $100 perpetuity | % |
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Liquidity Risk Management In Banks Economic And Regulatory Issues
Authors: Roberto Ruozi, Pierpaolo Ferrari
1st Edition
3642295800, 978-3642295805
