Approx. Elasticity

The table below shows the time to maturity for 3 bonds, a 2-year, 3-year, and 5-year. Each annual coupon bond has a yield to maturity of 3.76% and a coupon rate of 5.24%.

Estimate the percent change in bonds price to a percent change in one plus the interest rate, assuming a 10 basis point change in the interest rates.

Maturity	Approximate Elasticity
2-year Bond
3-year Bond
5-year Bond