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Bond x is a premium bond making semiannual payments. The bond has a coupon rate...

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Accounting

Bond x is a premium bond making semiannual payments. The bond has a coupon rate of 10 percent, a
YTM of 8 percent, and 16 years to maturity. Bond Y is a discount bond making semiannual payments. This
bond has a coupon rate of 8 percent, a YTM of 10 percent, and also has 16 years to maturity. Both bonds
have a par value of $1,000.
a. What is the price of each bond today?
b. If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from
now? In 7 years? In 11 years? In 15 years? In 16 years?
Note: For all requirements, do not round intermediate calculations and round your answers to 2
decimal places, e.g.,32.16.
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