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Abondtraderpurchasedeachofthefollowingbondsatayieldtomaturityof8%.Immediatelyaftershepurchasedthebonds,interestratesfellto7%.Whatisthepercentagechangeinthepriceofeachbondafterthedeclineininterestrates?Fillinthefollowingtable: Price @ 8% Price @ 7% Percent Change 10-year, 10% annual coupon 10-year zero 30-year zero $100 perpetuity
- Abondtraderpurchasedeachofthefollowingbondsatayieldtomaturityof8%.Immediatelyaftershepurchasedthebonds,interestratesfellto7%.Whatisthepercentagechangeinthepriceofeachbondafterthedeclineininterestrates?Fillinthefollowingtable:
|
| Price @ 8% | Price @ 7% | Percent Change |
| 10-year, 10% annual coupon |
|
|
|
| 10-year zero |
|
|
|
| 30-year zero |
|
|
|
| $100 perpetuity |
|
|
|
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
