Question: A 5 year bond that has the same feature as one of your 30 years bonds ie, same rating and same coupon rate of 4.5%

A 5 year bond that has the same feature as one of your 30 years bonds ie, same rating and same coupon rate of 4.5% and YTM of 6%. Calculate the new price of bond at the new YTM of 2%,4%, 8%, and 10% for both 5-years bond and 30-years bond. Plot the graph of the relationship between the price and YTM for each bond on the same graph. What did you find regarding the relationship between price and YTM for shorter and longer maturity bond? Which bond has a higher sensitive to the change in the price when the yield change?

	Price at 2%	Price at 4%	Price at 6%	Price at 8%	Price at 10%
5 year bond
30 year bond

Fill in graph and answer questions. Thank you!

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