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Which of the following bonds has the largest percentage change in price when the market interest rate decreases from 8 % to 7 % ?
Which of the following bonds has the largest percentage change in price when the market interest rate decreases from to
a A year bond with annual coupon with $ face value
b A year zero with $ face value
cA year zero with $ face value
A year zero with $ face value
Solution
tablePrice at Price at Pctge. changeyear, annual coupon,$$year zero,year zero,year zero,
CAN YOU PLEASE EXPLAIN THE STEP BY STEP HOW THEY FOUND THE PERCENT OF CHANGE IN THE BOX for wxaple it is and how do you figure out the percent of change to get the number of
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