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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 has a yield to maturity of and has years to maturity. Pegasus LTD has a discount bond making semiannual payments. This bond pays a coupon of has a yield to maturity of and also has years to maturity. Both bonds have a par value of $ 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? 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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