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4. Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 10 percent, has a YTM of 8 percent,
4. Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 10 percent, has a YTM of 8 percent, and has 16 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 8 percent, has a YTM of 10 percent, and also has 16 years to maturity. The bonds have a $1.000 par value. What is the price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In seven years? In 12 years? In 14 years? In 16 years? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.... 32.16.) 20 points Bond X Bond Y Price of bond Today In one year eBook In seven years In 12 years Print In 14 years In 16 years References
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