Find the Sensitivity of $10-$year, $$1000\mathrm{.}00$ Bonds with Different Coupnn Rates to Interest Rate Changes

Effect of a Decline in the Require Rate of Return

$(1)$

Bonds

with a

Coupon

Rate of

$(2)$ Price of bonds when $k=5\%$

$(3)$ Price of bonds when $k=3\%$

Percentage

Change in

Bond Price

$(5)$

Percentage

Change

Bond Price Elasticity

Effects of an Increase in the Required Rate of Return

$(1)$

Bonds

with a

Coupon

Rate of:

$(2)$ Price of bondis when $k=5\%$

$(4)=[(3)-(2)](2)$

Percentage

Change in

Bond Price

$(5)$

Percentage $(6)=(4)(5)$

Change

Bond Price Elasticity