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Bond X is a premium bond making annual payments. The bond has a coupon rate of 9 percent, a YTM of 7 percent, and has
Bond X is a premium bond making annual payments. The bond has a coupon rate of 9 percent, a YTM of 7 percent, and has 13 years to maturity. Bond Y is a discount bond making annual payments. This bond has a coupon rate of 7 percent, a YTM of 9 percent, and also has 13 years to maturity. Assume the interest rates remain unchanged. Requirement 1: What are the prices of these bonds today? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Prices Bond X Bond Y Requirement 2: What do you expect the prices of these bonds to be in one year? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Prices Bond X Bond Y Requirement 3: What do you expect the prices of these bonds to be in three years? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Prices Bond X Bond Y Requirement 4: What do you expect the prices of these bonds to be in eight years? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Prices Bond X Bond Y Requirement 5: What do you expect the prices of these bonds to be in 12 years? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Prices Bond X Bond Y Requirement 6: What do you expect the prices of these bonds to be in 13 years? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Prices Bond X Bond Y
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