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3. Bond CBA is a premium bond making annual payments. The bond has a coupon rate of 7.5%, a YTM of 6% and has 13

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3. Bond CBA is a premium bond making annual payments. The bond has a coupon rate of 7.5%, a YTM of 6% and has 13 years to maturity. Bond ANZ is a discount bond making annual payments. This bond has a coupon rate of 6%, a YTM of 7.5% and also has 13 years to maturity. Given that the face value is $1000 for each bond, what are the prices of these bonds today? If interest rates remain unchanged, what do you expect the prices of these bonds to be in three years? In eight years? In 12 years? In 13 years? What's going on here? Illustrate your answers by graphing bond prices versus time to maturity

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