How a bond''s price is affected by interest rates

Reference no: EM13749331

Using a spreadsheet construct a graph depicting how a bond's price is affected by interest rates for the following two annual payment corporate bonds:
Bond A: 5 year maturity, 12% coupon
Bond B: 25 year maturity, 6% coupon
Using whole number interest rates ranging from 4% to 15% calculate the associated PVs and graph them. How do the two graphs differ? Why?

Reference no: EM13749331

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