In: Finance
An investor purchased the following five bonds. Each bond had a par value of $1,000 and a 11% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 5%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table. Enter all amounts as positive numbers. Do not round intermediate calculations. Round your monetary answers to the nearest cent and percentage answers to two decimal places.
Price @ 11% | Price @ 5% | Percentage Change | |
10-year, 10% annual coupon | $ | $ | % |
10-year zero | |||
5-year zero | |||
30-year zero | |||
$100 perpetuity |