18. Bond Price Movements Bond X is a premium bond making semiannual

payments. The bond has a coupon rate of 7.5 percent, a YTM of 6 percent,

and 13 years to maturity. Bond Y is a discount bond making semiannual

payments. This bond has a coupon rate of 6 percent, a YTM of 7.5 percent,

and also 13 years to maturity. What are the prices of these bonds today

assuming both bonds have a $1,000 par value? If interest rates remain

unchanged, what do you expect the prices of these bonds to be in 1 year?

In 3 years? In 8 years? In 12 years? In 13 years? Whats going on here?

Illustrate your answers by graphing bond prices versus time to maturity. Need steps in Exel