Draw the price yield curves for bond

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Consider a bond (bond1) which matures in 30 years and a bond (bond2) which matures in 15 years. Both have a facevalue $100 and semi annunal coupon payment of 7%(2). Draw the price yield curves for bond1 and bond2 on the same yield-price plane with yield on the horizontal axis, marking the price intercept for both curves. If the two curves intersect, find the YTM at that point. For the horizontal axis use YTM.

Reference no: EM131340457

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