Question
Question content area top Part 1 Consider the following bonds: Bond Coupon Rate (annual payments) Maturity (years) A 0.0% 15 B 0.0% 10 C 4.5%
Question content area top
Part 1
Consider the following bonds:
Bond | Coupon Rate (annual payments) | Maturity (years) |
A | 0.0% | 15 |
B | 0.0% | 10 |
C | 4.5% | 15 |
D | 7.9% | 10 |
What is the percentage change in the price of each bond if its yield to maturity falls from
6.4%
to
5.4%?
Question content area bottom
Part 1
The percentage change in the price of bond A is
enter your response here%.
(Round to one decimal place.)
Part 2
The percentage change in the price of bond B is
enter your response here%.
(Round to one decimal place.)
Part 3
The percentage change in the price of bond C is
enter your response here%.
(Round to one decimal place.)
Part 4
The percentage change in the price of bond D is
enter your response here%.
(Round to one decimal place.)
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