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5. An investor purchased bond A and bond C. Each bond matures in 4 years, has face value of $1,000, and has a yield
5. An investor purchased bond A and bond C. Each bond matures in 4 years, has face value of $1,000, and has a yield to maturity of 7.2%. Bond A pays an 11.5% annual coupon, while Bond C is a zero-coupon bond. a. Find the current market price for bond A and C. b. Assuming that the yield to maturity of each bond remains at 7.2% over the next 4 years. Calculate the price of the bonds at each of the following maturity: Years to Maturity 4. Price of Bond A Price of Bond C 3 2 1 0
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