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? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Prices Bond X $ Bond Y $ Requirement 2: What do you expect the prices of these bonds to be in one year? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g.,32.16).) Prices Bond X $ Bond Y $ Requirement 3: What do you expect the prices of these bonds to be in three years? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g.,32.16).) Prices Bond X $ Bond Y $ Requirement 4: What do you expect the prices of these bonds to be in eight years? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g.,32.16).) Prices Bond X $ Bond Y $ Requirement 5: What do you expect the prices of these bonds to be in 12 years? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Prices Bond X $ Bond Y $ Requirement 6: What do you expect the prices of these bonds to be in 19 years?

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