Answer and Explanation:
To calculate the percentage change in the price of each bond when its yield to maturity falls from 6.3% to 5.3%, we need to use the concept of bond price and yield.
The price of a bond and its yield to maturity have an inverse relationship. When the yield to maturity decreases, the price of the bond generally increases, and vice versa. This relationship is due to the fact that when the yield to maturity decreases, the bond becomes more attractive to investors, and they are willing to pay a higher price for it.
To calculate the percentage change in the price of bond A, denoted as K, we can use the following formula:
K = [(New Price - Old Price) / Old Price] * 100
Now, we need specific information about bond A, such as its initial price and any other relevant details, in order to calculate the percentage change in its price.
Without the specific information about bond A, it is not possible to provide an accurate and informative answer. However, the formula mentioned above can be used to calculate the percentage change in the price of any bond given its initial and final prices.
Remember to substitute the appropriate values for "New Price" and "Old Price" into the formula to calculate the percentage change in the bond's price.