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Bond Y is a discount bond that makes semiannual payments. This bond pays a coupon rate of 9 percent, has a YTM of 11 percent,
Bond Y is a discount bond that makes semiannual payments. This bond pays a coupon rate of 9 percent, has a YTM of 11 percent, and has 11 years to maturity. Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 11 percent, has a YTM of 9 percent, and has 11 years to maturity. Both bonds have a par value of $1,000. Compute the price of each bond today? If interest rates do not change, what do you expect the price of these bonds to be one year from now? In two years? In seven years? In 9 years? In 11 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Bond X Bond Y Price of bond Today In one year In two years In seven years In 9 years In 11 years
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