(Interest Rate Sensitivity) An investor purchased the following 5
bonds. Each bond had a par value of $1,000 and 8 % yield to maturity on
the purchase day. Immediately after the investor purchased them,
interest rates fell and each then had a new YTM of 7% . What is the
percentage change in price for each bond after the decline in interest
rates? Fill in the following table:
Price @ 8% Price 7% Percentage change10-yr,10% annual coupon
10-year zero
5-year zero
30-year zero
$100 perpetuity
Click here for the solution: (Interest Rate Sensitivity) An investor purchased the following 5 bonds
