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A Japanese company has a bond outstanding that sells for 88 percent of its 100,000 par value. The bond has a coupon rate of 4.7
A Japanese company has a bond outstanding that sells for 88 percent of its 100,000 par value. The bond has a coupon rate of 4.7 percent paid annually and matures in 18 years. What is the yield to maturity of this bond (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Yield to maturity % Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 11 percent, has a YTM of 9 percent, and has 17 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 9 percent, has a YTM of 11 percent, and also has 17 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 nine years? In 12 years? In 14 years? In 17 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Bond X Bond Y Price of bond Today In one year In nine years In 12 years In 14 years In 17 years
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