Bond X is a premium bond making annual payments. The bond has a coupon rate of 9.5 percent, a YTM of 7.5 percent, and has 20 years to maturity. Bond Y is a discount bond making annual payments. This bond has a coupon rate of 7.5 percent, a YTM of 9.5 percent, and also has 20 years to maturity. Assume the interest rates remain unchanged.

Requirement 1: What do you expect the prices of these bonds to be in three years?

Bond X= Bond Y=

Requirement 2: What do you expect the prices of these bonds to be in eight years?

Bond X= Bond Y=

Requirement 3: What do you expect the prices of these bonds to be in 12 years?

Bond X= Bond Y=

Requirement 4: What do you expect the prices of these bonds to be in 20 years?

Bond X= Bond Y=