Bond X is a premium,bond making semiannual payments. The bond pays a 9 percent coupon, has a YTM of 7 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a 7 percent coupon, has a YTM of 9 percent, and also has 13 years to maturity. What is the dollar price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In three years? In eight years? In 12 years? Bond X: Coupon rate Yield to maturity Settlement date Maturity date Maturity date Maturity date Maturity date Maturity date Redemption (% of par) # of coupons per year Bond Y: Coupon rate 9% 7% 1/1/2000 1/1/2013 1/1/2012 1/1/2010 1/1/2005 1/1/2001 100 2 7%

Bond X is a premium,bond making semiannual payments. The bond pays a 9 percent coupon, has a YTM of 7 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a 7 percent coupon, has a YTM of 9 percent, and also has 13 years to maturity. What is the dollar price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In three years? In eight years? In 12 years