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S 0 7 - 1 8 Bond Price Movements [ LO 2 ] Bond x is a premium bond making semiannual payments. The bond pays
S Bond Price Movements LO
Bond 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 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 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 one year from now? In three years? In eight years? In years? In years?
Note: Do not round intermediate calculations and round your answers to decimal places, eg
tabletabletablePrice of bondTodayBond Bond
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