What is the price of bond today

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Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 8 percent, has a YTM of 6 percent, and has 14 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 17 years to maturity.

1. What is the price of each bond today?

2. If interest rate remains unchanged, what do you expect the price of these bonds to be one year from now? Price of these bonds 8 years from now? Price of these bonds 12 years from now?

Reference no: EM133072862

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