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# 4. The Hartford Telephone Company has a \$1,000 par value bond outstanding that pays 11 percent annual interest.

The current yield to maturity on such bonds in the market is 14 percent. Compute the price of the bonds for these maturity dates: a. 30 years. b. 15 years. c. 1 year. Then graph the relationship in a manner similar to the figure 10-2.  Also explain why the pattern of price change takes place. (Please see attached) 4. The Hartford Telephone Company has a \$1,000 par value bond outstanding that pays 11 percent annual interest. The current yield to maturity on such bonds in the market is 14 percent. Compute the price of the bonds for these maturity dates: a. 30 years. b. 15 years. c. 1 year. Then graph the relationship in a manner similar to the figure 10-2. Also explain why the pattern of price change takes place.

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