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Problem 8 - 1 7 Bond Price Movements Bond x has a premium bond making semiannual payments. The bond pays a coupon of 1 2
Problem Bond Price Movements
Bond has a premium bond making semiannual payments. The bond pays a coupon of percent, has a YTM of percent, and has years to maturity. Bond is a discount bond making semiannual payments. This bond pays a coupon of percent, has a YTM of percent, and also has years to maturity. Both bonds have a par value of $ What is the price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be year from now? In years? In years? In years? In years? Do not round intermediate calculations and round your answers to decimal places, eg
tableBond Bond
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