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X Corp. issued 20-year bonds thirteen years ago at a coupon rate of 4.6%. The bonds make semiannual payments. The yield to maturity (YTM) on

X Corp. issued 20-year bonds thirteen years ago at a coupon rate of 4.6%. The bonds make

semiannual payments. The yield to maturity (YTM) on these bonds is 7.1%.

  1. What is the current bond price? Please show your calculations.

  2. Valencia Corp. issues 15-year bonds today at a coupon rate of 4.6%. Which bonds have the highest

    price volatility? Please explain.

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