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1. Use information on US treasury bills, notes, and bonds to graph the yield curve on 2/20/2018. 2. Ducktales and Chip and Dale R.R. both

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1. Use information on US treasury bills, notes, and bonds to graph the yield curve on 2/20/2018. 2. Ducktales and Chip and Dale R.R. both have bonds with a 7% semi-annual coupon priced at par. Ducktales bonds have 3 years to maturity and Chip and Dale R.R. have 19 years to maturity. Assume a face value of 1,000. (a) What is the percentage change in price if interest rates rise by 2%? Fall by 2%? (b) Illustrate the relationship between bond prices for these two bonds and YTM. (Use YTM 0(1)15) (c) Explain the observed relationship

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