Excel Online Structured Activity: Interest Rate Sensitivity

A bond trader purchased each of the following bonds at a yield to maturity of 10%. Immediately after she purchased the bonds, interest rates fell to 7%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

What is the percentage change in the price of each bond after the decline in interest rates? Assume annual coupons and annual compounding. Fill in the following table. Do not round intermediate calculations. Round your answers to two decimal places.

	Price @ 10%	Price @ 7%	Percentage Change
10-year, 10% annual coupon	$	$	%
10-year zero			%
5-year zero			%
30-year zero			%
$100 perpetuity			%

Excel Online Structured Activity: Interest Rate Sensitivity nd trader purchased each of the following bonds at a yield to maturity o 10% l mediate after she purchased the bonds, interest rates fell to 7% The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the e analysis to answer the questions below Open spreadsheet What is the percentage change in the price of each bond after the decline in interest rates? Assume annual coupons and annual compounding. Fill in the following table. Do not round intermediate calculations. Round your answers to two decimal places. Price @ 10% Price 7y Percentage Change 10-year, 10% annual coupon 10-year zero S-year zero 30-vear Tero $100 perpetuity 95 Check My Work Reset Problem 1 Interest Rate Sensitivity 3 Original yield to maturity at issue 4 Changed yield to maturity immediately afterpurchase 10.00% 10-year, 10% annual coupon bond 10-vear zero coupon bond Maturity term, N 0 Maturity term,N 8 Coupon rate 9 Par value. FV 10 PMT 10 0.00% $1,000.00 $0.00 10.00% $1,000.00 Coupon rate Par value, FV 12 Original price at issue 13 Price with changed yield to matu 14 Percentage change 15 16 17 PMT 18 Original price at issue 19 Price with changed yield to matu Original price at issue Price with changed yield to maturity Percentage change Formulas Formulas #11A #A/A #A/A Original price at issue Price with changed yield to maturity Percentage change #N/A #N/A Percentage change 21 5-vear zero coupon bond 30-year zero coupon bond 5Maturity term, N 23 Maturity term, N 24 Coupon rate 25 Par value, FV 26 PMT 27 28 Original price at issue 9 Price with changed yield to matu 30 Percentage change 31 32 33 Original price at issue 4 Price with changed yield to matu 35 Percentage change 0.00% $1,000.00 $0.00 30 0.00% $1,000.00 $0.00 Coupon rate Par value, FV Original price at issue Price with changed yield to maturity Percentage change Formulas Formulas #A/A #A/A Original price at issue Price with changed yield to maturity Percentage change #N/A #N/A Perpetuity, S100 annual coupon Annual coupon $100 Original price at issue Price with changed yield to maturity Percentage change Formulas Original price at issue Price with changed vield to maturity Percentage change #N/A #N/A #N/A