Question: Bond ( X ) is a premium bond making semiannual payments. The bond pays a coupon rate of 7 percent, has a YTM
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of percent, has a YTM of percent, and has years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of percent, has a YTM of percent, and also has years to maturity. The bonds have a $ par value. What is the price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In seven years? In years? In years? In years?
Note: Do not round intermediate calculations and round your answers to decimal places, eg
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