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An investor purchased the following 5 bonds. Each bond had a par value of $1,000 and a 10% yield to maturity on the purchase day.
An investor purchased the following 5 bonds. Each bond had a par value of $1,000 and a 10% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 5%. What is the percentage change in price for each bond after the decline in interest rates? (Round all the answers below to two decimal places)
Price 10% | Price 5% | Percentage Change | |
10-year, 10% annual coupon | |||
10-year zero | |||
5-year zero | |||
30-year zero | |||
$100 perpetuity |
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