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Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9 percent, a YTM of 7 percent, and 1

Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9 percent, a YTM of 7 percent, and 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 7 percent, a YTM of 9 percent, and also has 13 years to maturity. Both bonds have a par value of $1,000.
What is the price of each bond today?
If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 4 years? In 8 years? In 12 years? In 13 years?

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