Question - Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 6 percent and has a YTM of 8 percent, and also has 12 years to maturity. The bond has a $1,000 par value.
What is the price of each bond today?
If interest rates remain unchanged what do you expect the price of Bond Y to be for the following years:
In 1 year =
In 2 years=
In 7 years=
In 11 years =
In 12 years=