Question: 2. Consider two bonds, X and Y. Both have a face value of $100.00. Bond X has a 4% coupon rate, while Bond Y

2. Consider two bonds, X and Y. Both have a face value

2. Consider two bonds, X and Y. Both have a face value of $100.00. Bond X has a 4% coupon rate, while Bond Y has an 8% coupon rate. Both bonds pay coupons semiannually. Bond X will mature in 20 years, and Bond Y will mature in 5 years. Both bonds are selling to yield 4%. a) What are the current prices of Bonds X and Bond Y? b) If the yields to maturity remain the same for both bonds two years from now, at what prices will Bonds X and Y to sell two years from now (i.e., after 4 semiannual periods have elapsed)? c) Suppose now that, instead of remaining the same, the yields to maturity on Bonds X and Y both turn out to be 6.00% two years from now. At what prices will bonds X and Y sell two years from now? I

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