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Bond X is a premium bond making semiannual payments. The bond pays a 7 percent coupon, has a YTM of 5 percent, and has 11 years to maturity. Bond Y...

Bond X is a premium bond making semiannual payments. The bond pays a 7 percent coupon, has a YTM of 5 percent, and has 11 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a 5 percent coupon, has a YTM of 7 percent, and also has 11 years to maturity.

What is the price of each bond today? (Round your answers to 2 decimal places. (e.g., 32.16))


Price of bond X $1,167.65
Price of bond Y $848.33

If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In two years? In six years? In 10 years? In 11 years? (Round your answers to 2 decimal places. (e.g., 32.16))

Price of bond Bond X Bond Y
One year $ $
Two years $ $
Six years $ $
10 years $ $
11 years $ $

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Solutions to assignment 2 of kelsey_neala12  (Oct 3).xlsx

Solutions to assignment 2 of kelsey_neala12 (Oct 3)
Using Excel's PV() function:
1) Bond X
RATE
NPER
PMT
FV
TYPE
PV 2.50%
22
($35.00)
($1,000.00)
$1,167.65 (This is the semi-annual yield to...

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