Using the steepness of the price/yield line
In the previous video, you saw that you can plot a graph of bond prices against yields and check its steepness visually to determine where it has the highest duration.
In this exercise, you are going to replicate this plot yourself to see how bond yields affect bond duration. You will consider a 20 year bond with a 5% coupon and face value of USD 100.
numpy, numpy_financial, pandas, and matplotlib have already been imported for you as np, npf, pd, and plt, respectively.
Deze oefening maakt deel uit van de cursus
Bond Valuation and Analysis in Python
Praktische interactieve oefening
Probeer deze oefening eens door deze voorbeeldcode in te vullen.
# Create an array of bond yields
bond_yields = np.arange(____, ____, ____)
# Convert this array into a pandas DataFrame and add column title
bond = pd.DataFrame(____, ____)