Question 13 (20 points) See the figure below showing 30-year bond prices versus time. The discount rate is 5.0%. This is the same figure we discussed in class. 200 180 mm mmmmmm 160 10% Coupon Rate 140 120 5% Coupon Rate Bond Price (% of Face Value) 100 mi 80 60 3% Coupon Rate 40 20 Zero Coupon 5 10 20 25 30 15 Year (a) (10 points) Why do all prices move toward $100 as they approach year = 30? (b) (10 points) Why does the 10% coupon rate curve (the top one) have larger up/ down movement than the 3% coupon rate curve