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Part l . Solve for the Price changing coupon, yield, and maturity and then graph each scenario. Scenario 4 : Yield is constant; Coupon is
Part l Solve for the Price changing coupon, yield, and maturity and then graph each scenario. Scenario : Yield is constant; Coupon is constant; Maturity changes
Scenario : Yield is constant; Coupon is constant; Maturity changes
Graphs for Scenarios and should show price and the change of price from starting point
ie for Scenario the starting point is $ coupon; yield Graphs for Scenarios and
should show price and the amount of premium or discount.
Use the type of chart that best illustrates the property analyzed.
Return to the base case at the start of each of the first scenarios.
Note: Change in price: new
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