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Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 7 percent, has a YTM of 5 percent, and
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 7 percent, has a YTM of 5 percent, and has 19 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 5 percent, has a YTM of 7 percent, and also has 19 years to maturity. The bonds have a $1,000 par value. What is the price of each bond today? (Do not round Intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) Price of Bond X Price of Bond Y 1243.49 $791.59 If Interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In 11 years? In 14 years? In 16 years? In 19 years? (Do not round Intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) Price of bond One year 11 years 14 years 16 years 19 years Bond X $1235.56 $ 1130.55 $ 1089.63 $ 1055.08 $ 1000 Bond Y $ 797100 $ 879.06 $ 891.79 $ 946.71 $ 1000
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