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table [ [ Bonds: , table [ [ Initial Price of Bonds ] , [ when k = 9 % ] ] ,
tableBonds:tableInitial Price of Bondswhen ktablePrice of Bonds whenktablePercentage Change inBond PricetablePercentage Changein ktableBond Price ElasticityPbeBond A$$grad,grad,gradBond B$$grad,grad,grad
Now suppose that instead the producer price index indicates that prices may soon increase by as much as percent, which results in an investor's required rate of return on a bond to increase to
Using this information, fill in the values for the percentage change in bond price, percentage change in and bond price elasticity for each bond in the table.
tabletableBonds with aCoupon Rate of:tableInitial Price of Bondswhen ktablePrice of Bondswhen ktablePercentage Change inBond PricetablePercentageChange in ktableBond PriceElasticity PbeBond A$$grad,Vgrad
Based on the calculations, it can be said that the bond price elasticity is in each scenario, which reflects relationship between interest rate movements and bond price movements.
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