What do you notice about the shape of the graph, Financial Management

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What do you notice about the shape of the graph

Problem

Bond X pays an 8% semiannual coupon, has a YTM of 6% and has 15 years to maturity. Bond Y pays a 6% semiannual coupon, has a YTM of 8%, and also has 15 years to maturity.

1. What are the prices of these bonds today?

2. If the interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 5 years? In 10 years? In 13 years? In 14 years? c) Plot both bonds on one graph showing Bond price versus Time to Maturity

3. What do you notice about the shape of the graph?

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