Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 11 percent, has a YTM of 9 percent, and has 11 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 9 percent, has a YTM of 11 percent, and also has 11 years to maturity. The bonds have a $1,000 par value.
What is the price of each bond today? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
Price of Bond X $ Price of Bond Y $
If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In two years? In seven years? In 9 years? In 11 years? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
Price of bond Bond X Bond Y One year $ $ Two years $ $ Seven years $ $ 9 years $ $ 11 years $ $
| Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 11 percent, has a YTM of 9 percent, and has 11 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 9 percent, has a YTM of 11 percent, and also has 11 years to maturity. The bonds have a $1,000 par value. |
| What is the price of each bond today? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) |
| Price of Bond X | $ |
| Price of Bond Y | $ |
| If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In two years? In seven years? In 9 years? In 11 years? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) |
| Price of bond | Bond X | Bond Y |
| One year | $ | $ |
| Two years | $ | $ |
| Seven years | $ | $ |
| 9 years | $ | $ |
| 11 years | $ | $ |
Related questions
| Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 11 percent, has a YTM of 9 percent, and has 11 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 9 percent, has a YTM of 11 percent, and also has 11 years to maturity. The bonds have a $1,000 par value. |
| What is the price of each bond today? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) |
| Price of Bond X | $ |
| Price of Bond Y | $ |
| If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In two years? In seven years? In 9 years? In 11 years? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) |
| Price of bond | Bond X | Bond Y |
| One year | $ | $ |
| Two years | $ | $ |
| Seven years | $ | $ |
| 9 years | $ | $ |
| 11 years | $ | $ |
