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Business, 23.09.2019 16:10 cheeraly09

8. you buy a 30-year zero coupon bond which will pay you $10,000 in 30 years at an annual yield of i=1% compounded once per year. a few minutes later the annual yield rises to i=2% compounded once per year. what is the percent change in the value of the bond? (hint: recall the formula for percent change. the answer should be negative.) 9. you buy a 30 year zero coupon bond which will pay you $1000 in 30 years at an annual yield of i=16.5% compounded once per year. 25 years later it will be a 5 year zero coupon bond. suppose the interest rate on this bond will be 16.5%, what will the price of this bond be in 25 years?

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8. you buy a 30-year zero coupon bond which will pay you $10,000 in 30 years at an annual yield of i...
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