1. Relationship between YTM and price

(a) Calculate the price of each bond and fill up the blank cells in the following table (3 points)

Maturity	PMT	Face value	YTM	Price
10	100	1000	20%
10	100	1000	18%
10	100	1000	16%
10	100	1000	14%
10	100	1000	12%
10	100	1000	10%
10	100	1000	8%
10	100	1000	6%
10	100	1000	4%

(b) Based on above table, draw a graph with horizontal axis showing the YTM and vertical axis showing prices. Show the graph below. (3 points)

(c) Explain intuitively why we do see a negative relationship between YTM and bond prices. (3 points)