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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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