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7-6 An investor has two bonds in her portfolio, Bond c and Bond z. Each bond matures in 4 years, has a face value of

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An investor has two bonds in her portfolio, Bond c and Bond z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 9.3%. Bond C pays a 10.5% annual coupon, while Bond z is a zero coupon bond. a. Assuming that the yield to maturity of each bond remains at 9.3% over the next 4 years, calculate the price of the bonds at each of the following years to maturity, Round your answer to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z b. Select the correct graph based on the time path of prices for each bond. Bond Price $1200 Bond z $400

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