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Suppose you have 2 year 5% semi-annualy paying coupon bond. a) Compute and Plot full 2 year life-time of the bond price when market discount

Suppose you have 2 year 5% semi-annualy paying coupon bond.

a) Compute and Plot full 2 year life-time of the bond price when market discount rate(IRR) stays at 5% with 1 day interval.

b) Compute and Plot full 2 year life-time of the bond price when market discount rate(IRR) moves upward from 2%(APR) in 3/250% increase with 1 day interval. ( 1 year = 250 days)

c) Compute and Plot full 2 year life-time of the bond price when market discount rate(IRR) moves downward from 7%(APR) in 3/250% increase with 1 day interval. ( 1 year = 250 days)

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