Problem 7-3 Valuing Bonds (LO2] Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 20 years to maturity, and a coupon rate of 7.4 percent paid annually. If the yield to maturity is 8.5 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price Problem 7-18 Bond Price Movements (LO2] Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 11 percent, has a YTM of 9 percent, and has 17 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 9 percent, has a YTM of 11 percent, and also has 17 years to maturity. The bonds have a $1,000 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 nine years? In 12 years? In 14 years? In 17 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Price of bond Bond X Bond Y Today $ 1,172.47 $ 847.61 In one year In nine years In 12 years In 14 years In 17 years