Question: 5. Perform instant experiments on whether changing various inputs causes an increase or decrease in the Bond Price and by how much. (E) What is

5. Perform instant experiments on whether changing various inputs causes an increase or decrease in the Bond Price and by how much. (E) What is the relationship between the price of a par bond and time to maturity? Try this question both when the YTM = coupon rate, and when YTM coupon rate, and see the differences. (F) What happens when the annual coupon rate is increased to the point that it equals the yield to maturity? What happens when it is increased further?

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