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Video Excel Online Structured Activity: Interest Rate Sensitivity A bond trader purchased each of the following bonds at a yield to maturity of 10%. Immediately

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Video Excel Online Structured Activity: Interest Rate Sensitivity A bond 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 file below. Open the spreadsheet and perform the required analysis to answer the questions below. X 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 round 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 $ **** % Interest Rate Sensitivity Original yield to maturity at issue Changed yield to maturity immediately after purchas Maturity term, N Coupon rate Par value, FV PMT Orginal price at issue Price with changed yield to maturity Percentage change PMT Original price at issue Price with changed yield to maturity O Percentage change 10-year, 10% annual coupon bond Formulas #N/A NIA #N/A NIA 10.00% 7.00% 10 10.00% $1,000.00 10-year zero coupon bond Maturity term. N Coupon rate Par value, FV PMT Original price at issue Price with changed yield to maturity Percentage change Formulas Original price at issue Price with changed yield to maturity Percentage change #N/A #NIA #NA 10 0.00% $1,000.00 $0.00 5-year zero coupon bond Maturity term, N Coupon rate Par value, FV PMT Original price at issue Price with changed yield to maturity Percentage change 2 Original price at issue 4 Price with changed yield to maturity S Percentage change 16 57 38 Annual coupon 39 40 Original price at issue 41 Price with changed yield to maturity 42 Percentage change 43 44 45 Original price at issue 46 Price with changed yield to maturity 47 Percentage change Formulas Perpetuity, $100 annual coupon Formulas ANIA WNIA INIA 5 0.00% $1,000.00 $0.00 ANIA ANIA WNIA $100 30-year zero coupon bond Maturity term, N Coupon rate Par value, FV PMT Original price at issue Price with changed yield to maturity Percentage change Formulas Original price at issue Price with changed yield to maturity Percentage change ANIJA ANJA INJA 30 0.00% $1,000.00 $0.00

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