Premium bond making annual payments based problem


Problem:

Bond X is a premium bond making annual payments. The bond pays a 14 percent coupon, has a yield to maturity (YTM) of 11 percent, and has 20 years to maturity. Bond Y is a discount bond making annual payments. This bond pays a 11 percent coupon, has a YTM of 14 percent, and also has 20 years to maturity. If interest rates remain unchanged, you would expect that 4 years from now, Bonds X and Y will be priced at $ ____ and $_____ , respectively. And in 11 years: $ ____ and $____ (round answers to 2 decimal places).

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Finance Basics: Premium bond making annual payments based problem
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