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home / study / business / finance / questions and answers / bond x is a premium bond making semiannual payments. ... Question: Bond X
home / study / business / finance / questions and answers / bond x is a premium bond making semiannual payments. ... Question: Bond X is a premium bond making semiannual payment... Save Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 8 percent, has a YTM of 6 percent, and has 20 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 6 percent, has a YTM of 8 percent, and also has 20 years to maturity. The bonds have a $1,000 par value. If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In six years? In twelve years? In 17 years? In 20 years? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) Price of bond Bond X Bond Y One year $ $ Six years $ $ Twelve years $ $ 17 years $ $ 20 years $ $
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