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(a) Calculate the YTM for each set of condition and fill up the blank cells in the following table (5 points) Face value PMT n

(a) Calculate the YTM for each set of condition and fill up the blank cells in the following table (5 points)

Face value

PMT

n

Price

YTM

1000

80

12

1200

1000

80

12

1100

1000

80

12

1000

1000

80

12

900

1000

80

12

800

1000

80

12

700

1000

80

12

600

1000

80

12

500

1000

80

12

400

2. (b) Based on above table, draw a graph with horizontal axis showing the price and vertical axis showing YTM. Show the graph below and explain intuitively what relation between price and YTM you observe and why. (5 points)

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