The document describes a bond that matures in 4 years, costs $100, and pays annual interest of 5%. It notes that when market interest rates are also 5%, matching the bond's coupon rate, the bond price will always be at par, or $100. The yield to maturity formula is provided to calculate that this bond's yield is also 5% given the current interest rate environment.

1. 26. What causes the inverse relationship between interest rates and bond prices?

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18. Responsibilities