Question
Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.9 percent, a YTM of 7.9 percent, and has
Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.9 percent, a YTM of 7.9 percent, and has 16 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 7.9 percent, a YTM of 9.9 percent, and also has 16 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $1,000. What are the prices of these bonds today? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Price | |
Bond X | $ |
Bond Y | $ |
What do you expect the prices of these bonds to be in one year? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Price | |
Bond X | $ |
Bond Y | $ |
What do you expect the prices of these bonds to be in three years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Price | |
Bond X | $ |
Bond Y | $ |
What do you expect the prices of these bonds to be in eight years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Price | |
Bond X | $ |
Bond Y | $ |
What do you expect the prices of these bonds to be in 12 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Price | |
Bond X | $ |
Bond Y | $ |
What do you expect the prices of these bonds to be in 16 years? (Do not round intermediate calculations.)
Price | |
Bond X | $ |
Bond Y | $ |
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