Bond prices and approaching maturity

When the yield to maturity is less than the coupon, the bond sells at a premium.
When the yield is greater than the coupon, the bond sells at a discount.

The figure below shows how the bond price in either case approaches
100%. Check this for a bond selling at a premium and one selling at a discount.

(The figure assumes a.annual coupons and b. that the yield stays constant.)

Coupon % 3
Years to Maturity 25
Yield % 8

110
100
90
Bond price, %

80
70
60
50
40
30
20
25 .75 2.5 .25 20 .75 7.5 .25 15 .75 2.5 .25 10 .75 7.5 .25 5 75 2.5 .25 0
23 2 21 18 1 16 13 1 11 8 6 3. 1
Years to maturity
d approaching maturity
the coupon, the bond sells at a premium.
pon, the bond sells at a discount.

price in either case approaches

a premium and one selling at a discount.

s and b. that the yield stays constant.)

15 .75 2.5 .25 10 .75 7.5 .25 5 75 2.5 .25 0

13 1 11 8 6 3. 1
ars to maturity
 25 46.626119
23.75 47.547681
22.5 48.562302
21.25 49.679381
20 50.909263
18.75 52.263339
17.5 53.754151
16.25 55.395506
15 57.202607
13.75 59.192189
12.5 61.382681
11.25 63.79437
10 66.449593
8.75 69.372942
7.5 72.591493
6.25 76.135056
5 80.03645
3.75 84.331809
2.5 89.060917
1.25 94.267572
0 100