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nterest Rate Sensitivity A bond trader purchased each of the following bonds at a yield to maturity of 10%. Immediately after she purchased the bonds,
nterest 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%. 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 @ 10% | Price @ 7% | Percentage Change | |
10-year, 10% annual coupon | $ ------ | $ ------ | %------- |
10-year zero | -------- | -------- | %------ |
5-year zero | -------- | -------- | %-------- |
30-year zero | --------- | -------- | %------- |
$100 perpetuity | -------- | ---------- | %------- |
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