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8% coupon 30-yr maturity bonds are currently trading at par. Graph the price behavior of the bond using intervals of 1% on interest rate [above
8% coupon 30-yr maturity bonds are currently trading at par. Graph the price behavior of the bond using intervals of 1% on interest rate [above and beyond the current rate] and about $200 change in price for each change in rates of 1%. Also graph the bond price behavior of a 30-yr bond that is callable at 120% of par.
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