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Consider a 15-year, 5 percent annual coupon bond. The bond is trading at a rate of...

Consider a 15-year, 5 percent annual coupon bond. The bond is trading at a rate of 12 percent. a. What is the price of the bond? b. If the rate of interest increases 100 basis points, what will be the bond’s new price? c. Using your answers to parts (a) and (b), what is the percentage change in the bond’s price as a result of the 1 percent increase in interest rates? (Negative value should be indicated by a minus sign.) d. Repeat parts (b) and (c) assuming a 100 basis point decrease in interest rates. s

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

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