A bond trader purchased each of the following bonds at a yield to maturity of 9%. Immediately after she purchased the bonds, interest rates fell to 6%. 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. 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 @ 9% Price @ 6% Percentage Change 10-year, 10% annual coupon $ fill in the blank 2 $ fill in the blank 3 fill in the blank 4 % 10-year zero fill in the blank 5 fill in the blank 6 fill in the blank 7 % 5-year zero fill in the blank 8 fill in the blank 9 fill in the blank 10 % 30-year zero fill in the blank 11 fill in the blank 12 fill in the blank 13 % $100 perpetuity fill in the blank 14 fill in the blank 15 fill in the blank 16 %
A bond trader purchased each of the following bonds at a yield to maturity of 9%. Immediately after she purchased the bonds, interest rates fell to 6%. 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. 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 @ 9% Price @ 6% Percentage Change 10-year, 10% annual coupon $ fill in the blank 2 $ fill in the blank 3 fill in the blank 4 % 10-year zero fill in the blank 5 fill in the blank 6 fill in the blank 7 % 5-year zero fill in the blank 8 fill in the blank 9 fill in the blank 10 % 30-year zero fill in the blank 11 fill in the blank 12 fill in the blank 13 % $100 perpetuity fill in the blank 14 fill in the blank 15 fill in the blank 16 %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A bond trader purchased each of the following bonds at a yield to maturity of 9%. Immediately after she purchased the bonds, interest rates fell to 6%. 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.
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 @ 9% | Price @ 6% | Percentage Change | |
10-year, 10% annual coupon | $ fill in the blank 2 | $ fill in the blank 3 | fill in the blank 4 % |
10-year zero | fill in the blank 5 | fill in the blank 6 | fill in the blank 7 % |
5-year zero | fill in the blank 8 | fill in the blank 9 | fill in the blank 10 % |
30-year zero | fill in the blank 11 | fill in the blank 12 | fill in the blank 13 % |
$100 perpetuity | fill in the blank 14 | fill in the blank 15 | fill in the blank 16 % |
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