Interest rate risk and bond price changes Apex Corp. has two outstanding bond issues. One issue...

 

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Interest rate risk and bond price changes Apex Corp. has two outstanding bond issues. One issue consists of 8% annual coupon bonds and the other issue consists of zero-coupon bonds. For each bond issue, calculate the bond prices and percentage change in prices when the required rate of return changes from 8% to 9% a. Ten years to maturity and the required rate of return goes from 8% to 9%. b. Twenty years to maturity and the required rate of return goes from 8% to 9%. c. Ten years to maturity and the required rate of return goes from 8% to 7%. d. Twenty years to maturity and the required rate of return goes from 8% to 7%. e. Compare and contrast your answers for parts a through d and comment on your observations CID a. The price of the 8%-coupon bond with 10 years to maturity and 8% required rate of return is $ (Round to the nearest cent.) Interest rate risk and bond price changes Apex Corp. has two outstanding bond issues. One issue consists of 8% annual coupon bonds and the other issue consists of zero-coupon bonds. For each bond issue, calculate the bond prices and percentage change in prices when the required rate of return changes from 8% to 9% a. Ten years to maturity and the required rate of return goes from 8% to 9%. b. Twenty years to maturity and the required rate of return goes from 8% to 9%. c. Ten years to maturity and the required rate of return goes from 8% to 7%. d. Twenty years to maturity and the required rate of return goes from 8% to 7%. e. Compare and contrast your answers for parts a through d and comment on your observations CID a. The price of the 8%-coupon bond with 10 years to maturity and 8% required rate of return is $ (Round to the nearest cent.)