Bond x is a premium bond making semiannual payments the


Bond X is a premium bond making semiannual payments. The bond pays a 10 percent coupon, has a YTM of 8 percent, and has 14 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a 8 percent coupon, has a YTM of 10 percent, and also has 14 years to maturity.

What is the price of each bond today? (Round your answers to 2 decimal places. (e.g., 32.16))

Price of bond X$     Price of bond Y$  

If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In four years? In nine years? In 13 years? In 14 years? (Round your answers to 2 decimal places. (e.g., 32.16))

Price of bond Bond X Bond Y

One year$   $     Four years$   $     Nine years$   $     13 years$   $     14 years$   $   

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