Kawesha Corporation has a premium bond making semiannual payments. The bond pays a 9 percent coupon, has a YTM of 7 percent, and has 13 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond pays a 7 percent coupon, has a YTM of 9 percent, and also has 13 years to maturity. If interest rates remain unchanged, what do you expect the price of these bonds to be (a) 1 year from now? (b) In 3 years? (c) In 8 years? (d) In 12 years
Kawesha Corporation has a premium bond making semiannual payments. The bond pays a 9 percent coupon, has a YTM of 7 percent, and has 13 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond pays a 7 percent coupon, has a YTM of 9 percent, and also has 13 years to maturity. If interest rates remain unchanged, what do you expect the price of these bonds to be
(a) 1 year from now?
(b) In 3 years?
(c) In 8 years?
(d) In 12 years
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The solution is talking about Miller Corporations which i do not know where it is coming from. Does it mean the solution was a copy and past?
Secondly, where did the figures come from? Were they assumptions or it is me missing a point in the question?
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