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Problem 7-7 Interest rate sensitivity An investor purchased the following 5 bonds. Each bond had a par value of $1,000 and an 9% yield to

Problem 7-7 Interest rate sensitivity

An investor purchased the following 5 bonds. Each bond had a par value of $1,000 and an 9% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 6%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table. Round your answers to the nearest cent or to two decimal places. Enter all amounts as positive numbers.

Price @ 9% Price @ 6% Percentage Change
10-year, 10% annual coupon $ $ %
10-year zero $ $ %
5-year zero $ $ %
30-year zero $ $ %
$100 perpetuity $ $ %

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