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28 Sep 2019
Bond X is a premium bond making annual payments. The bond pays an 8percent coupon, has a YTM of 6 percent, and has 13 years tomaturity. Bond Y is a discount bond making annual payments. Thisbond pays a 6 percent coupon, has an 8 percent YTM, and also has 13years to maturity. If interest rates remain unchanged, what do youexpect the price of these bonds to be one year from now? In threeyears? In eight years? In 12 years? In 13 years? What's going onhere? Illustrate your answers by graphing bond prices versus timeto maturity. *Hint: You are finding present values
This can be done excel, actually I would prefer it to be on excelif you can do it.
Bond X is a premium bond making annual payments. The bond pays an 8percent coupon, has a YTM of 6 percent, and has 13 years tomaturity. Bond Y is a discount bond making annual payments. Thisbond pays a 6 percent coupon, has an 8 percent YTM, and also has 13years to maturity. If interest rates remain unchanged, what do youexpect the price of these bonds to be one year from now? In threeyears? In eight years? In 12 years? In 13 years? What's going onhere? Illustrate your answers by graphing bond prices versus timeto maturity. *Hint: You are finding present values
This can be done excel, actually I would prefer it to be on excelif you can do it.
This can be done excel, actually I would prefer it to be on excelif you can do it.
Casey DurganLv2
30 Sep 2019
