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What do you expect the price of these bonds

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Question - Bond X is a premium bond making annual payments. The bond pays a 9% coupon, has a YTM of 7%, and has 13 years to maturity. Bond Y is a discount bond making annual payments. This bond pays a 7% coupon, has a YTM of 9% and also has 13 years to maturity.

If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In three years? In eight years? In 12 years? In 13 years?

Reference no: EM133037781

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