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Problem 7 - 1 8 Bond Price Movements [ LO 2 ] Bond X is a premium bond making semiannual payments. The bond pays a
Problem Bond Price Movements LO
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of percent, has a YTM of percent, and has years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of percent, has a YTM of percent, and also has years to maturity. The bonds have a $ par value. What is the 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 years? In years? In years? In years? Do not round intermediate calculations and round your answers to decimal places, eg Please solve it on excel and show the work step by step
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