Excel Online Structured Activity: Interest Rate Sensitivity

A bond trader purchased each of the following bonds at a yield to maturity of $10\%.$ Immediately after she purchased the bonds, interest rates fell to $5\%.$ 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.

Open 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 @ $10\%$

$

coupon

$10-$year zero

$5-$year zero

$30-$year zero

$$100$ perpetuity

Price @ $5\%$

Percentage Change

$10-$year, $10\%$ annual

coupon

$

e$.$ How would the price or the bona be artected by a change in the going market interest rate? $($Hint: Conauct a sensitivity analysis of price to changes in the going market interest rate for the bond. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. This is an oversimplification, but assume it for purposes of this problem.$)$ Round your answers to the nearest cent.

$\backslash$table$[[$Nominal market rate,Actual bond price$],[0\%,$$