Bond prices / YTM values referenced below:

• How would you describe the shape of the yield curve? How would an inverted yield curve be different and what might that indicate about the market and economy?
• What is the difference between coupon rates and yield to maturity, and how do these differences impact bond prices?
• Why are long-term bond prices more volatile than short-term bond prices?
• How might the yield to maturity change for an organization in the event of a credit upgrade or downgrade by rating agencies?
• Fixed income securities are generally considered less volatile than equity securities. Why do high-yield bonds more closely resemble equity volatility?

Price YTM Coupon Maturity 102.50 0.73% 3.25% 1 year 106.84 1.74 5.25% 2 year 107.02 2.06% 4.50% 3 year 98.86 3.00 2.75% 5 year 108.91 3.54% 5.00% 7 year 97.65 4.04 3.75% 10 year 104.93 4.38% 4.75% 20 year 102.32 4.36 4.50% 30 year 94.96 4.24% 4.00% 50 year Price YTM Coupon Maturity 102.50 0.73% 3.25% 1 year 106.84 1.74 5.25% 2 year 107.02 2.06% 4.50% 3 year 98.86 3.00 2.75% 5 year 108.91 3.54% 5.00% 7 year 97.65 4.04 3.75% 10 year 104.93 4.38% 4.75% 20 year 102.32 4.36 4.50% 30 year 94.96 4.24% 4.00% 50 year