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  3. Bond Valuation and Analysis in Python

Exercise

Impact of coupons on price

You have looked at how changing the yield to maturity of a bond has a big impact on its price. Changing the coupon, i.e., the amount of money the bond pays in each period, can also have an impact on the bond's price. This is what you are going to investigate now by comparing bonds with high and low coupons.

numpy_financial has already been imported for you as npf.

Instructions 1/3

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  • 1
    • Find the price of a 10 year bond with a face value of USD 100, annual coupon of 2%, yield of 4%, and print the result.
  • 2
    • Find the price of a 10 year bond with a face value of USD 100, annual coupon of 5%, yield of 4%, and print the result.
  • 3
    • Find the price of a 10 year bond with a face value of USD 100, annual coupon of 10%, yield of 4%, and print the result.