Bond X Is A Premium Bond Making Annual Payments. Finding Bond Prices?

Bond X is a premium bond making annual payments. The bond pays an 8.5 percent coupon, has a YTM of 6.5 percent, and has 18 years to maturity. Bond Y is a discount bond making annual payments. This bond pays a 6.5 percent coupon, has a YTM of 8.5 percent, and also has 18 years to maturity. Assume the interest rates remain unchanged.
What is prices of the bonds today?
Prices in one year?
Prices in 3 years??
HELP! Homework question to study for test! Step by step much appreciated!

Both comments and pings are currently closed.

Comments are closed.

Powered by WordPress | Designed by: free css template | Thanks to hostgator coupon and web hosting reviews