Question 1:

Consider the bond with the following features that pays annual coupons: Face value : 100 Coupon rate : 0.08 Coupon frequency: 1 Time to maturity: 20 Suppose that the interest rate (YTM) equals 7%.

b) Construct a dataframe that shows the bond price for all the scenarios where interest rate (YTM) varies between 7% to 9%, by 0.1% increments (0.070, 0.071, ..., 0.088, 0.089, 0.090). Basically, your table will have 21 rows, with 4 columns for bond characteristics, 1 column for interest rate (YTM), and 1 column for the bond prices. The only varying columns will be interest rate (YTM) and corresponding bond price.