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You wish to analyze the yield/price relationship of two 10-year bonds over a range of interest rates. The bonds have the following characteristics: Bond 1

You wish to analyze the yield/price relationship of two 10-year bonds over a range of interest rates. The bonds have the following characteristics:

Bond 1 Bond 2

Par Amount: 100% 250%

Coupon: 10% 0%

Payment Frequency: Semi-Ann . n/a

Using a spreadsheet, calculate the prices of each of these bonds for yields to maturity ranging from 1% to 20% in increments of 1%. Plot these two prices curves on a single graph with appropriate labling.

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