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8. Problem 7.06 (Bond Valuation) An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has
8. Problem 7.06 (Bond Valuation)
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 9.2%. Bond C pays a 12.5% annual coupon, while Bond Z is a zero coupon bond.
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