Question 7 is on the top and the answers are on the bottom. I need the calculator inputs used to get to the answers thou
Posted: Fri Jul 01, 2022 7:43 am
Question 7 is on the top and the answers are on the bottom. Ineed the calculator inputs used to get to the answers though. Iknow how the percentage is calculated, but what are the inputs usedto get the bond prices.
7-7 7-7 INTEREST RATE SENSITIVITY An investor purchased the following five 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: Bond 10-year, 10% annual coupon 10-year zero 5-year zero 30-year zero $100 perpetuity 10-year, 10% annual coupon 10-year zero 5-year zero 30-year zero $100 perpetuity Price @8% Price at 8% $1,134.20 463.19 680.58 99.38 1,250.00 Price @7% Price at 7% $1,210.71 508.35 712.99 131.37 1,428.57 Percentage Change Percentage Change 6.75% 9.75 4.76 32.19 14.29
- Question 7 Is On The Top And The Answers Are On The Bottom I Need The Calculator Inputs Used To Get To The Answers Thou 1 (121.47 KiB) Viewed 26 times