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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.

Deze oefening maakt deel uit van de cursus

Bond Valuation and Analysis in Python

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Praktische interactieve oefening

Probeer deze oefening eens door deze voorbeeldcode in te vullen.

# Find the price of a 10 year bond with 2% coupon and 4% yield
bond_coupon_2 = -npf.pv(rate=____, nper=____, pmt=____, fv=____)

# Print the result
print("2% Coupon Price: ", ____)
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