Bond x is a premium bond making annual payments the bond


Bond X is a premium bond making annual payments. The bond has a coupon rate of 8.6 percent, a YTM of 6.6 percent, and has 19 years to maturity. Bond Y is a discount bond making annual payments. This bond has a coupon rate of 6.6 percent, a YTM of 8.6 percent, and also has 19 years to maturity. Assume the interest rates remain unchanged.

Requirement 1:

What are the prices of these bonds today?

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Financial Management: Bond x is a premium bond making annual payments the bond
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