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Complete the following table and draw a graph showing how bond price for each bond changes over time as they move towards their maturity dates.
Complete the following table and draw a graph showing how bond price for each bond changes over time as they move towards their maturity dates. Describe the relationship between bond prices and time remaining for maturity. Years remining to maturity BOND A Coupon rate pa Market interest rate pa BOND B Coupon rate pa Market interest rate pa BOND C Coupon rate pa Market interest rate pa
Complete the following table and draw a graph showing how bond price
for each bond changes over time as they move towards their maturity
dates. Describe the relationship between bond prices and time
remaining for maturity.
Years
remining
to
maturity
BOND A
Coupon rate pa
Market interest rate
pa
BOND B
Coupon rate pa
Market interest rate
pa
BOND C
Coupon rate pa
Market interest rate
pa
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