What is the appropriate price or yield to maturity

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Fixed Income Assignment -

You are an analyst in charge of fixed income securities. You need to value a series of bonds, with maturities ranging from 1 to 50 years. The bonds vary in the coupon rate paid, as well as price. Since the issuance date, many of these bonds have significantly changed their prices. What is the appropriate price or yield to maturity for each of the bonds below? Construct a yield curve using the information from your results. What would be the price of each bond if interest rates increase by 1%?

Price

Yield to Maturity

Coupon (Semi- annual)

Maturity

102.50

 

3.25%

1 years

 

1.74

5.25%

2 years

107.02

 

4.5%

3 years

 

3.00

2.75%

5 years

108.91

 

5%

7 years

 

4.04

3.75%

10 years

104.93

 

4.75%

20 years

 

4.36

4.5%

30 years

94.96

 

4%

50 years

Reference no: EM132180121

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