CHAPTERS $5$ & $6$

Bond $x$ is a premium bond making semiannual payments. The bond has a coupon rate of $9\mathrm{.}2$ percent, a YTM of $7\mathrm{.}2$ percent, and has $17$ years to maturity. Bond $Y$ is a discount bond making semiannual payments. This bond has a coupon rate of $7\mathrm{.}2$ percent, a YTM of $9\mathrm{.}2$ percent, and also has $17$ years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $$1,000.$

a$.$ What are the prices of these bonds today? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What do you expect the prices of these bonds to be in one year? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,3216.)$

c$.$ What do you expect the prices of these bonds to be in three years? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$.$ What do you expect the prices of these bonds to be in eight years? $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

e$.$ What do you expect the prices of these bonds to be in $12$ years? $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

f$.$ What do you expect the prices of these bonds to be in $17$ years? $($Do not round intermediate calculations.$)$

$\backslash$table$[[,$Bond $x,$Bond $Y$