Years remaining to Maturity 6% p.a. 6% p.a. BOND A Coupon rate = 8% p.a. Market interest rate = BOND B Coupon rate = 6% p.a. Market interest rate = BOND C Coupon rate = 4% p.a. Market interest rate = 6% p.a. 10 $1,147.2017 $1,000.0000 $852.7983 9 $1,136.0338 $1,000.0000 $863.9662 8 $1,124.1959 $1,000.0000 $875.8041 7 $1,111.6476 $1,000.0000 $888.3524 6 $1,098.3465 $1,000.0000 $901.6535 5432 $1,084.2473 $1,000.0000 $915.7527 $1,069.3021 $1,000.0000 $930.6979 $1,053.4602 $1,000.0000 $946.5398 $1,036.6679 $1,000.0000 $963.3321 1 $1,018.8679 $1,000.0000 $981.1321 0 $1,000.0000 $1,000.0000 $1,000.0000 Draw a graph showing how the bond price for each bond changes over time as they move towards their maturity dates. Describe the relationship between bond prices and the time remaining for maturity.

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.