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. Vantex Corporation has a premium bond making semiannual payments. The bond pays a coupon of 6 . 5 % , has a yield to

. Vantex Corporation has a premium bond making semiannual payments. The bond pays a coupon of 6.5%, has a yield to maturity of 5.3%, and has 13 years to maturity. Pegasus LTD has a discount bond making semiannual payments. This bond pays a coupon of 5.3%, has a yield to maturity of 6.5%, and also has 13 years to maturity. Both bonds have a par value of $1,000. If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 3 years? In 8 years? In 12 years? In 13 years? What's going on here? Illustrate your answers by graphing bond prices versus time to maturity (one graph for both bonds, please)

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