You wish to analyze the yield/price relationship of two 10-year bonds over a range of interest rates.
Fantastic news! We've Found the answer you've been seeking!
Question:
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.
Related Book For
Posted Date: