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Bond Y is a discount bond that makes semiannual payments. This bond pays a coupon rate of 8 percent, has a YTM of 10 percent,
Bond Y is a discount bond that makes semiannual payments. This bond pays a coupon rate of 8 percent, has a YTM of 10 percent, and has 14 years to maturity. Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 10 percent, has a YTM of 8 percent, and has 14 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 four years? In nine years? In 13 years? In 14 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Bond Y Bond X 851.02 $ Price of bond Today In one year In four years In nine years In 13 years In 14 years
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