Bond X is a premium bond making semiannual payments. The bond pays a 9 percent c
ID: 2632759 • Letter: B
Question
Bond X is a premium bond making semiannual payments. The bond pays a 9 percent coupon, has a YT of 7 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a 7 percent coupon, ha a YTM of 9 percent, and also has 13 years to maturity. What is the pace of each bond today? (Round your answers to 2 decimal places (e g.. 32.16)) Price of bond X $ Price of bond Y $ It interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In three years? In eight years? In 12 years? In 13 years? (Round your answers to 2 decimal plances. (e.g., 32.16) Price of bond Bond X Bond Y One year $$ Three years $$ Eight years $$ 12 years $$ 13 years $ $Explanation / Answer
Price of Bond X= $1168.90
Price of bond Y= $848.534
Bond X Bond Y 1 yr 1252.15 926.95 3 yr 1436.88 1105.40 8 yr 2026.86 1716.66 12 yr 2668.98 2441.26 13 yr 2859.08 2665.92