Question: In chapter 6, Bond Valuations techniques are introduced A bond is a debt security, like IOU. The bond issuers borrow from the Bond Investors. The

In chapter 6, Bond Valuations techniques are introduced A bond is a debt security, like IOU. The bond issuers borrow from the Bond Investors. The issuers agree to repay the principal amount of the loan on the maturity date. Thus, a bond represents loans from the holder to the issuer. In this assignment, you are to discuss the following with numerical examples:

1 Explain the concept of Coupon bond yields and its pricing behavior

2 Discuss the Term Structure of Interest Rates and how it related to the Yield Curve

3 What are the different shapes of the yield curve

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