Bond Price Movements
Bond X is a premium bond making annual payments. The bond pays a 14 percent coupon, has a yield to maturity (YTM) of 11 percent, and has 20 years to maturity. Bond Y is a discount bond making annual payments. This bond pays a 11 percent coupon, has a YTM of 14 percent, and also has 20 years to maturity. If interest rates remain