Question: make sure the answer is correct 100% * Bond Price and Interest rate sensitivity A bond trader purchased each of the following bonds at a

make sure the answer is correct 100% * Bond Price and

make sure the answer is correct 100%

* Bond Price and Interest rate sensitivity A bond trader purchased each of the following bonds at a YTM of 7%. Immediately after she purchased the bonds, interest rate increased to 8%. Bond has a face value of 1,000$. What is the percentage change in the price of each bond after the increase in interest rates? Fill the following table: (10 points) Maturity Coupon Price at 7% Price at 8% Percentage change Increase OR Decrease 4 year 10% 1,101.6 1066.23

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