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Bond x is a premium bond making semiannual payments. The bond has a coupon rate of 8 percent, a YTM of 6 percent, and 2

Bond x is a premium bond making semiannual payments. The bond has a coupon rate of 8 percent, a YTM of 6 percent, and 20 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 6 percent, a YTM of 8 percent, and also has 20 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 11 years? In 15 years? In 19 years? In 20 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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