Question: i need the functions 17 Problem: Suppose the going interest rate changed from 8%, falling to 2% or rising to 14%. How 18 would those



17 Problem: Suppose the going interest rate changed from 8%, falling to 2% or rising to 14%. How 18 would those changes affect the value of the bond? 19 20 21 First, we list the key features of the bond as "model inputs": 22 23 Bond Value Bond Value 24 Years to Maturity 20 1 25 Going rate, r: Positive Values Change Positive Values Change 26 2% 27 4% 28 6% 29 8% 30 10% 31 12% 32 14% 14% $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 0% 5% 10% 15% udario from the above aranh F 42 List the 3 main bond theorems you derive from the above graph 43 44 Frist Theorem: 45 46 47 48 49 Second Theorem: 50 51 52 53 54 Third Theorem: 55 56 57 CO
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