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Bond X is a premium bond making semi annual payments. The bond has a coupon rate of 8.8 percent, a YTM of 6.8 percent, and
Bond X is a premium bond making semi annual payments. The bond has a coupon rate of 8.8 percent, a YTM of 6.8 percent, and has 13 years to maturity. Bond Y is a discount bond making semi annual payments. This bond has a coupon rate of 6.8 percent, a YTM of 8.8 percent, and also has 13 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $1000. What is the price in 12 years?
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