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What you show on the picture is not the value of the coupon but the bond yield. For example, for a zero coupon bond to maturity of a bond is calculated: $$YTM = \left(\frac{FV}{ P}\right)^{1/t}-1$$ Where $YTM$ is yield to maturity, $FV$ is face value (value printed on the bond), $P$ is the bond price, $t$ is the number of time periods for the bond to reach ...


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For free-floating sovereign borrowers (e.g., Japan, Canada, UK, and the euro as a bloc (the member countries are pegged versus each other), short-term bond yields are largely determined by the expected path of the policy rate (plus a small term premium). For longer-term bonds, one can debate how value is determined, but forward rates are generally smooth, so ...


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