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6-17. Bond Value as Maturity Approaches An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of
6-17. Bond Value as Maturity Approaches An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity equal to 6.5%. One bond, Bond C, has a 10% coupon (paid semiannually); the other bond, Bond Z, is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 6.5% over the next 4 years, what will be the price of each of the bonds at the following time periods? Fill in the following table: (Assume semiannual compounding.) Price of Bond Z Price of Bond 0 1 ALON
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