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Interest Rate Sensitivity A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately after she purchased the bonds,
Interest Rate Sensitivity
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. Round your answers to two decimal places.
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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