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7-6. Bond valuation An investor has two bonds in his or her portfolio, Bond C and Bond Z. Each matures in 4 years, has a
7-6. Bond valuation An investor has two bonds in his or her portfolio, Bond C and Bond Z. Each matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.8%. Bond C pays a 11.5% annual coupon while Bond Z is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 8.8% over the next 4 years, calculate the price of the bonds at the following years to maturity and fill in the following table. Round your answers to two decimal places
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