Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 10 percent, a YTM of 8 percent, and 16 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 8 percent, a YTM of 10 percent, and also has 16 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 7 years? In 11 years? In 15 years? In 16 years? Note: For all requirements, do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. a. Price today b. Price in 1 year Price in 7 years Price in 11 years Price in 15 years Price in 16 years $ SA SA $ $ $ Bond X 1,178.74 $ 1,172.92 $ 1,126.59 $ 1,000.00 $ Bond Y 841.97 846.28 883.10 F00.00

Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 10 percent, a YTM of 8 percent, and 16 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 8 percent, a YTM of 10 percent. and also has 16 years to maturity. Both bonds have a par value of $1,000 o. 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 7 years? In 11 years? In 15 years? In 16 years? Note: For all requirements, do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16