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Bond X is a premium bond making semi annual payments. The bond has a coupon of 7.5%, or go to maturity of 6%, and 13

Bond X is a premium bond making semi annual payments. The bond has a coupon of 7.5%, or go to maturity of 6%, and 13 years to maturity. Bond why is a discount bond making semi annual payments. The bond has a coupon rate of 6%, a yield to maturity of 7.5%, and also 13 years to maturity. What are the prices of these bonds today assuming both bonds have $1000 par value? If the interest rate remains unchanged, what do you expect the price of these bonds to be in one year? In three years? In eight years? In 12 years? In 13 years? What's going on here? Illustrate your answer by graphing the bond prices versus time to maturity.

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