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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 is a premium bond making semiannual payments. The bond has a coupon rate of percent, a YTM of percent, and years to maturity. Bond is a discount bond making semiannual payments. This bond has a coupon rate of percent, a YTM of percent, and also has years to maturity. Both bonds have a par value of $
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 year from now? In years? In years? In years? In years?
Note: For all requirements, do not round intermediate calculations and round your answers to decimal places, eg
tableBond Bond
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