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a. Bond XX is a discount bond making semiannual payments with a coupn of 6%, YTM - 7.5%, and 13 years to maturity. b. Bond

a. Bond XX is a discount bond making semiannual payments with a coupn of 6%, YTM - 7.5%, and 13 years to maturity.

b. Bond YY is a premium bond with a coupon rate of 7.5% semiannuallypaid, YTM of 6%, and 13 years to maturity. Assume $1000 as par value. What are the price of bond XX and YY?If interest rates stay stead, then what will be the prices of both the bonds in 1 year, 8 years, 13 years,

c. Which bond is more interest rate sensitive?

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