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You wish to analyze the yield/price relationship of a 10-year bond over a range of interest rates. The bond has the following characteristics: Par Amount:

You wish to analyze the yield/price relationship of a 10-year bond over a range of

interest rates. The bond has the following characteristics:

Par Amount: 100%

Coupon: 10%

Payment Frequency: Semi-Annual

Using a spreadsheet, calculate the prices of this bond for yields to maturity ranging

from 1% to 20% in increments of 1%. Plot this price curve on a graph with

appropriate labeling [note: plot yield on the X-axis and price on the Y-axis].

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