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4 An investor has two bonds in her portfolio, Bond Cand Bond 2. Each bond matures in 4 years, has a face value of $1,000,

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4 An investor has two bonds in her portfolio, Bond Cand Bond 2. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.67. Bone Cpays 2 10.5% annual coupon, while Bond Z is a zero coupon bond Assuming that the yield to maturity of each bond remains at 8.6% over the next 4 years, calculate the price of the bonds at each of the following years to matunity Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z $ 3 $ 2 1 $ 0 5 D. Select the correct graph based on the time path of prices for each bond. A Band Price 51200 Bendz 51.000 5000 5500 Bond 5400 1300 Y MAY B an olce 51200 11000 5000 1000 $400 1500 $400 $200 Yeas to Maturity C Bond Price! $1200 $1.000 Bond $800 $600 Bond Z $400 $200 1 b 5 Years to Maturity D Bond Price! $1200 Bond Z $1.000 5800 Bond C $600 5400 5200 3 12 1 Years to Maturity The correct sketch is -Select

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