Complete the following table and draw a graph showing how bond price
for each bond changes over time as they move towards their maturity
dates. Describe the relationship between bond prices and time
remaining for maturity.
Year BOND A - Bond B - Bond C -
Coupon rate = 8% p.a. . Coupon rate = 6% p.a. Coupon rate = 4% p.a
Market interest rate =6% p.a. Market interest rate =6% p.a. Market interest rate =6% p.a.
10
9
8
7
6
5
4
3
2
1
0