Question: Excel Online Structured Activity: Interest Rate Sensitivity A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately after


Excel Online Structured Activity: Interest Rate Sensitivity A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately after she purchased the bonds, interest rate fell to 6%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to Answer the questions below. X ppen spreadsheet What is the percentage change in the price of each bond after the decline in interest rates? Assume annual coupons and annual compounding, Fill in the following table. Do not round intermediate calculations. Round your answers to two decimal places. Price 8% Price O 6% Percentage Change $ % % 10-year, 10% annual coupon 10-year zero 5-year zero po-year zero $100 perpetuity 96 % % Excel Online Structured Activity: Interest Rate Sensitivity A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately after she purchased the bonds, interest rate fell to 6%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to Answer the questions below. X ppen spreadsheet What is the percentage change in the price of each bond after the decline in interest rates? Assume annual coupons and annual compounding, Fill in the following table. Do not round intermediate calculations. Round your answers to two decimal places. Price 8% Price O 6% Percentage Change $ % % 10-year, 10% annual coupon 10-year zero 5-year zero po-year zero $100 perpetuity 96 % %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
