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Done Exercises Lect1.xlsx EX1 EX2 EX3 EX4 EX5 EX6 EX7 Exercise 3 A bond trader purchased each of the following bonds at a yield to
Done Exercises Lect1.xlsx EX1 EX2 EX3 EX4 EX5 EX6 EX7 Exercise 3 A bond trader purchased each of the following bonds at a yield to maturity of 8%. 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: Price @ 8% Price @ 7% Percentage Change 10-year, 10% annual coupon 10-year zero 5-year zero 30-year zero $100 perpetuity
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