An investor purchased the following 5 bonds. Each of them had a 8percent yield t

Question

An investor purchased the following 5 bonds. Each of them had a 8percent yield to maturity on the purchase day. Immediately aftershe purchased them, interest rates fell and each then had a new YTMof 7 percent. What is the percentage change in price for each bondafter the decline in interest rates? Fill in the followingtable:

                                                    Price@ 8 %                   Price @ 7%             Percentage Change
10 year, 10% annualcoupon          _______                      _______                   _______
10-yearzero                                  _______                     _______                    _______
5-year                                           _______                     _______               _______
30-year$                                        _______                   _______                     _______
100perpetuity                                 _______       _______           _______

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