What the prices of these bonds today

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Bond X is a premium bond making annual payments. The bond has a coupon rate of 8.8 persent, a YTM of 6.8 % and has 13 years to maturity. Bond Y is a discount bond making annual payments. This bond has a coupon rate of 6.8% , a YTM of 8.8% and also has 13 years to maturity. Assume the interest rate remains unchanged.

1. What the prices of these bonds today

What do you expect the prices of these bonds to be in one year, in 3 years, 8 years, in 12 years and in 13 years?

Reference no: EM13729801

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