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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 8-17 Bond Price Movements
Bond x has a premium bond making semiannual payments. The bond pays a coupon of 12 percent, has a YTM of 10 percent, and has 18 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon of 10 percent, has a YTM of 12 percent, and also has 18 years to maturity. Both bonds have a par value of $1,000. What is the price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 7 years? In 12 years? In 16 years? In 18 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.)
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