A zero-coupon bond is bond that does not pay coupon interests. Return on such a bond all comes from capital gain yield, i.e. you pay $900 today and get the face value of $1,000 at maturity, but you do not receive any coupon payments.

A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately after she purchased the bond, 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.

|'1 Bands-nance .doax Lucida Sans Uni.. A zerocoupon bond is hand that does not pay coupon Interests. Return on such a hand all comes from capital gain yield, i.e. you pay $90!) today and get the face value of $1,000 at maturity, but you do not receive any coupon payments' A bond trader purchased each of the following bonds at a yleld to maturlty of 396. Immediately after she purchased the bond, interest rates Fell to 7% What is the percentage change in the price of each band after the decline in Interest rates?I Fill In the followlng table. W 39 of .118