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Elementary,Middle School,High School,College,University,PHD
Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
7-7Â Â Â Â Â INTEREST RATE SENSITIVITYÂ Â An investor purchased the following 5 bonds. Each bond had a par value of $1,000 and an 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:
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10-year, 10% annual coupon 10-year zero
5-year zero 30-year zero
$100 perpetuity
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Price @ 8%
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Price @ 7%
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Percentage Change
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