Question: Answer for i and ii pls Bond X is a premium bond making annual payments. The bond pays an 8% coupon, has YTM of 6%,

Answer for i and ii pls

Bond X is a premium bond making annual payments. The bond pays an 8% coupon, has YTM of 6%, and has 13 years to maturity. Bond Y is a discount bond making annual payments. This bond pays a 6% coupon, has YTM if 8%, and has 13 years to maturity. If interest rate remains unchanged, compute the price on these bonds to be in: i. one year (4 Marks) ii. 10 year (4 Marks) Based on your computation in part (i) and (ii), interpret your findings. (2 Marks)

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