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Use the information in the following table to complete the questions in this section. All bonds have a Face Value of $1000. Assume semi-annual compounding

Use the information in the following table to complete the questions in this section. All bonds have a Face Value of $1000. Assume semi-annual compounding

Bond Maturity (years) Coupon Rate p.a. Yield p.a.
A 2 4% 8%
B 4 6% 6%
C 6 8% 4%

Calculate the exact price change for each bond if the yield curve experiences a parallel shift and: a. increases by 1%, 3%, 5%, 7%, and 9% b. decreases by 1%, 3%, 5%, 7%, and 9%

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