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Assume a 2 year, 5 year, 10 year and 30 year bond all pay a coupon rate of 4%. Test how the bond prices change
Assume a 2 year, 5 year, 10 year and 30 year bond all pay a coupon rate of 4%. Test how the bond prices change as the yield to maturity increases from 1 % to 8% (change YTM in increments of 1%). Plot the results on a graph.
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