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Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.2 percent, a YTM of 7.2 percent, and has
Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.2 percent, a YTM of 7.2 percent, and has 17 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 7.2 percent, a YTM of 9.2 percent, and also has 17 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $1,000. a. What are the prices of these bonds today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What do you expect the prices of these bonds to be in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What do you expect the prices of these bonds to be in three years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What do you expect the prices of these bonds to be in eight years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.) e. What do you expect the prices of these bonds to be in 12 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) f. What do you expect the prices of these bonds to be in 17 years? (Do not round intermediate calculations.) Bond X Bond Y a. Price today b. Price in one year C. Price in three years d. Price in eight years e. Price in 12 years f. Price in 17 years
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