Question

help me pls for each bond

Consider the following bonds: Bond Coupon Rate (annual payments) 0.0% Maturity (years) 15 10 15 0.0% 3.6% 7.7% 10 What is the percentage change in the price of each bond if its yield to maturity falls from 6.3% to 5.3%?

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

A I c D E F G H Par value of each Bond $1,000.00 | Maturity Bond A PRICE Yeild to maturity 6.30% 5.30% $399.95 $460.87 $542.83 $596.65 $742.83 $827.07 $1,101.59 $1,182.65 Coupon rate 0.00% 0.00% 3.60% 7.70% B. Percentage change in Price 15.23% 9.91% 11.34% 7.36% 100

Cell reference -

A B C D Par value of each Bond 1000 0.053 Bond А B PRICE Yeild to maturity Coupon rate Maturity 0.063 Percentage change in Price 15 =PV($E$6,07,-C7*$C$2,-$C$2,0) =PV($F$6,07,-C7*$C$2,-$C$2,0) =F7/E7-1 0 10 =PV($E$6,08,-C8*$C$2,-$C$2,0) =PV($F$6,08,-C8*$C$2,-$C$2,0) =F8/E8-1 0.036 =PV($E$6,09,-C9*$C$2,-$C$2,0) =PV($F$6,09,-C9*$C$2,-$C$2,0) =F9/E9-1 0.077 10 =PV($E$6,010,-C10*$C$2,-$C$2,0) =PV($F$6,010,-C10*$C$2,-$C$2,0) =F10/E10-1

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