Use a different graph for each one and clearly label the axis and the shifting of curves.

Explain clearly (in words and on the graph) whether the price and yield to maturity increased or decreased. 4. You buy a bond that pays annual interest payments of 7% of the bonds face value of $1000. You initially pay $950 for the bond. You receive an annual interest payment after one year, then sell the bond for $880. What is your total rate of return on the investment, expressed as a percentage of the purchase price?