m/static/b/u/evo/index.html?deploymentid=59326323652342789435777379148e5BN 97813379096868id=1331462a CENGAGE MINDTAP el Online Activity: Interest Rate Sensitivity Q Search this course Son 1 at Excel Online Structured Activity: Interest Rate Sensitivity A band 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 fie below. Open the spreadsheet and perform the required analysis to answer the questions below 1 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 found 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 File Home Insert Draw Page Layout Formulas Data Review View Help Editing Anal v 10 BEBA Currency B10 B D F 10.00 700 10-20 coupon bond 10 10.00 51.000.00 A Interest Rate Sensitivity 2 3. Original yield to maturity at le 4 Changed yield to maturity immediately after purchase 5 10 year, 10% annual coupon band 7 Maturity term N Coupon rate 5 Par value. FV 10 PM 11 32 Original price is 13 Price with charged yield to maturity 14 Percentage change 15 16 Formulas 17 PMT 10 Original price ale 19 Price with changed yield to any 20 Percentage charge Maturty term. N Coupon rate Par value, FV PMT ERRATEKWA 90 0.001 $1.000.00 $0.00 > Original price at Proo with changed yield to maturity Percentage change Formulas UNA NA Original price at issue Price with changed yield to maturity Percentage unge WNA WNIA NA Sheet1 + Calculation Mode: Automatic Workbook Statistics Bufak to Me about blank c Excel template - Saved Search Alt. File Home Insert Draw Page Layout Formulas Data Review View Help Editing Arial v10 B BOA . Currency B10 G H 0001 51.000.00 30.00 0 3.year roupon Band Matom. N Coupon rate Par value. FV PMT 30 DOON 39,000 00 50.00 Original price issue Price with charged yield to my Percentage change A 22 S-year open bond 21 Maturity temN 2 Coupon 25 Par value. FV 21 PUT 27 28 Olginal proti Price we changed yield to matury 30 Percentage change 11 Fomulas Original price at Price with changed yield to matutly 15 percentage change 36 Parpotty $100 coupon 38 Annual coupon 39 40 Original price issue 41 Price with changed yield to maturity MA Form Original Price wil changed yield tomaty Percentage WA NA NU $100 Sheet1 + Excel template - Saved Search(At. File Home Insert Draw Page Layout Formulas Data Review View Arias Help v 10 BEYA Editing B10 y Currency $100 36 17 Perpetut $100 coupon A coupon 39 10 Original price issue 41 Price with changed yield to matury 12 Percentage change 43 44 Formulas 45 Original price tissue 46 Price with changed yield to maturity 47 Percentage change NA NA INDA 49 51 52
