elasticityPMT

There is a security with 8 years to maturity, a yield to maturity of 10.4%, and a face value of $1,000.

Calculate the bonds value at the following coupon rates.

Coupon Rates	Bond Value
3.1
5.1
7.1
9.1

Calculate the bonds value if the interest rate increases by 10-basis points (0.1%) (YTM = 10.5)% for each of the above coupon rates.

Coupon Rates %	Bond Value
3.1
5.1
7.1
9.1

Calculate the change in the bond price to a change in the interest rates (slope: chg Bond / chg rate).

Coupon Rates %	Chg Bond / .001
3.1
5.1
7.1
9.1

Calculate the approximate Bonds elasticity at each of the interest rates.

Coupon Rates	Approximate Elasticity
3.1
5.1
7.1
9.1