Question

ALSO, FIND THE VALUES FOR BOND C AND D TOO PLEASE!

Consider the following bonds Bond Coupon Rate (annual payments) Maturity (years) А 0.0% 15 В 0.0% 10 C 3.6% 15 7.9% D 10 What is the percentage change in the price of each bond if its yield to maturity falls from 6.5% to 5.5%? The percentage change in the price of bond A is 15.4 % (Round to one decimal place.) The percentage change in the price of bond B is 15.4% (Round to one decimal place.)

Answer 1

Bond	Coupon rate	Maturity	Price at 6.5%	Price at 5.5%	Change
A	0%	15	$388.83	$447.93	13.2%
B	0%	10	$532.73	$585.43	9.0%
C	3.60%	15	$727.32	$809.29	10.1%
D	7.90%	10	$1,100.64	$1,180.90	6.8%

Workings

D- Book1 - Excel Sign in - x AutoSave 01 File Home H Draw Insert Page Layout Formulas Data Review View X Calibri -AA = = = D. 2 : A = = = = = = de = General $ % 2 Help Tell me what you want to do E Z DDelete - insert - 66 99 | Conditional Format as Cell Format Formatting Table Styles Styles Cells Share Comments 47 0 Z Sort & Find & Filter Select -11 K Font V Paste 45 B I J Clipboard Alignment Number Editing B1 - X fc Bond A H. D Bond Coupon rate Maturity Price at 6.5% Price at 5.5% Change A 0 15 --PV(6.5%,D2,c2*1000, 1000) --PV(5.5%,D2,c2*1000,1000) =(F2-E2)/F2 B 0 10 =-PV(6.5%,D3,C3*1000,1000) =-PV(5.5%,D3,C3*1000,1000) =(F3-E3)/F3 C 0.036 15 =-PV(6.5%,D4,C4*1000,1000) =-PV(5.5%,D4,C4*1000,1000) =(F4-E4)/F4 D 0.079 10 E-PV(6.5%,D5,C5* 1000,1000) =-PV(5.5%,D5,C5* 1000,1000) = (F5-E5)/F5