Reference no: EM131786709

Question: Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 8.2 percent, a YTM of 6.2 percent, and has 15 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 6.2 percent, a YTM of 8.2 percent, and also has 15 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $1,000.

1. What are the prices of these bonds today? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

                    Price

Bond X        $1,193.49

Bond Y        $829.16

2. What do you expect the prices of these bonds to be in one year? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

                    Price

Bond X        $1,185.37

Bond Y        $835,27

3. What do you expect the prices of these bonds to be in three years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

                    Price

Bond X       $1,167.55

Bond Y       $849.08

4. What do you expect the prices of these bonds to be in eight years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

                    Price

Bond X        $1,112.19

Bond Y        $895.06

5. What do you expect the prices of these bonds to be in 12 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

                   Price

Bond X      $1,053.99

Bond Y      $

6. What do you expect the prices of these bonds to be in 15 years? (Do not round intermediate calculations.)

                  Price

Bond X      $1,000.00

Bond Y      $1,000.00

In 12 years, I need bond Y. I entered 849.08 but it was wrong. So please give me another answer that's right.