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Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 11 percent, a YTM of 9 percent, and 17

image text in transcribed Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 11 percent, a YTM of 9 percent, and 17 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 9 percent, a YTM of 11 percent, and also has 17 years to maturity. Both bonds have a par value of $1,000. a. What is the price of each bond today? b. If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 8 years? In 12 years? In 16 years? In 17 years? Note: For all requirements, do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16

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