Bond P is a premium bond with a coupon of 5 percent , a YTM of 6.64 percent, and 16 years to maturity. Bond D is a discount bond with a coupon of 5 percent, a YTM of 9.56 percent, and also 16 years to maturity. If interest rates remain unchanged, what is the difference in the prices of these bonds 5 year from now? (i.e., Price of Bond P - Price of Bond D) Note: Corporate bonds pay coupons twice a year. (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.)
Get Answers For Free
Most questions answered within 1 hours.