A bond has a $1,000 par value, 10 years to maturity, and a 8% annual coupon...

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Finance

A bond has a $1,000 par value, 10 years to maturity, and a 8%annual coupon and sells for $980.

  1. What is its yield to maturity (YTM)? Round your answer to twodecimal places.

       %
  2. Assume that the yield to maturity remains constant for the next5 years. What will the price be 5 years from today? Do not roundintermediate calculations. Round your answer to the nearestcent.

INTEREST RATE SENSITIVITY

An investor purchased the following 5 bonds. Each bond had a parvalue of $1,000 and an 10% yield to maturity on the purchase day.Immediately after the investor purchased them, interest rates fell,and each then had a new YTM of 7%. What is the percentage change inprice for each bond after the decline in interest rates? Fill inthe following table. Round your answers to the nearest cent or totwo decimal places. Enter all amounts as positive numbers.

Price @ 10%Price @ 7%Percentage Change
10-year, 10% annual coupon$$   %
10-year zero        
5-year zero        
30-year zero        
$100 perpetuity        

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A bond has a $1,000 par value, 10 years to maturity, and a 8%annual coupon and sells for $980.What is its yield to maturity (YTM)? Round your answer to twodecimal places.   %Assume that the yield to maturity remains constant for the next5 years. What will the price be 5 years from today? Do not roundintermediate calculations. Round your answer to the nearestcent.INTEREST RATE SENSITIVITYAn investor purchased the following 5 bonds. Each bond had a parvalue of $1,000 and an 10% yield to maturity on the purchase day.Immediately after the investor purchased them, interest rates fell,and each then had a new YTM of 7%. What is the percentage change inprice for each bond after the decline in interest rates? Fill inthe following table. Round your answers to the nearest cent or totwo decimal places. Enter all amounts as positive numbers.Price @ 10%Price @ 7%Percentage Change10-year, 10% annual coupon$$   %10-year zero        5-year zero        30-year zero        $100 perpetuity        

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