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A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately after she purchased the bonds, interest rates fell to 7%. What is the percentage change in the price of each bond after the decline in interest rates?

User Smassey
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Answer:

The question is incomplete here is the complete question.

Step-by-step explanation:

A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately after she purchased the bonds, interest rates fell to 7%. What is the percentage change in the price of each bond after the decline in interest rates? Fill in the following table:

Price @ 8% Price @ 7% Percentage Change

10 year,10% annual coupon

10 year zero

5 year zero

30 year zero

$100 perpetuity

A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately-example-1
A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately-example-2
User Chethan
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