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LO2 18. Bond Price Movements Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 7.5 percent, a YTM

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LO2 18. Bond Price Movements Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 7.5 percent, a YTM of 6 percent, and 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 6 percent, a YTM of 7.5 percent. and also 13 years to maturity. What are the prices of these bonds today assuming both bonds have a $1.000 par value? If interest rates remain unchanged. what do you expect the prices of these bonds to be in I year? In 3 years? In 8 years? In 12 years? In 13 years? What's going on here? Tllustrate your answers by graphing bond prices versus time to maturity, Chapter 6 - End of Chapter Questions and Problems - Question 18 (Price of Bond Yin one year) $882.66 $888.52 $1,126.68 $1,120.44 $1.106.59

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