Consider a bond with a 3% annual coupon and a face value of $1000. Complete the following table. Years to Maturity Yield to Maturity 2 1% 2 3% 3 3% 5 1% 5 6% (Round to two decimal places as needed.) Current Price $ Based on the table, what relationships do you observe between years to maturity, yield to maturity, and the current price? (Select all that apply.)
Consider a bond with a 3% annual coupon and a face value of $1000. Complete the following table. Years to Maturity Yield to Maturity 2 1% 2 3% 3 3% 5 1% 5 6% (Round to two decimal places as needed.) Current Price $ Based on the table, what relationships do you observe between years to maturity, yield to maturity, and the current price? (Select all that apply.)
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Transcribed Image Text:Consider a bond with a 3% annual coupon and a face value of $1000. Complete the following table.
Years to Maturity
Yield to Maturity
2
1%
2
3%
3
3%
5
1%
5
Current Price
$
$
$
6%
$
(Round to two decimal places as needed.)
Based on the table, what relationships do you observe between years to maturity, yield to maturity, and the current price?
(Select all that apply.)
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