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.