Calculate the percentage change in price for each bond

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Question: Calculate the price for each bond below when the market interest rate is 9 percent and when the market interest rate is 10 percent and put the result in a table format.[1] Hint: zero coupon bonds have only one cash inflow ($1,000 at the end of the bond's life and yet are discounted on a semiannual basis). A 7-year bond with a 9 percent coupon rate A 7-year bond with a zero percent coupon rate A 15-year bond with a 9 percent coupon rate A 15-year bond with a zero percent coupon rate Calculate the percentage change in price for each bond when the market interest rate went from nine percent to ten percent. Input these results into your table.

Reference no: EM131441890

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