Question

In: Finance

Consider the following​ bonds: Bond Coupon Rate ​(annual payments) Maturity ​(years) A 0.00.0​% 1515 B 0.00.0​%...

Consider the following​ bonds:

Bond

Coupon Rate ​(annual payments)

Maturity ​(years)

A

0.00.0​%

1515

B

0.00.0​%

1010

C

4.24.2​%

1515

D

7.77.7​%

1010

What is the percentage change in the price of each bond if its yield to maturity falls from

6.8 %6.8%

to

5.8 %5.8%​?

The percentage change in the price of bond A is

nothing​%.

​(Round to one decimal​ place.)

Solutions

Expert Solution

As nothing was mentioned excel is used. If you need with “financial formula”, let me know, will do that also. Thank you


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