Yield-price plane with yield on the horizontal axis

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Reference no: EM131340066

Consider a bond B1 which matures in 30 years and a bond B2 which mature in 15 years Both have face value $100 and semiannual coupon payment at 7% (2). Draw the price-yield curves for B1 and B2 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 the YTM (and not the yield per period as we did in class).

Reference no: EM131340066

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