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An investor has two bonds in her poitinlio Pond C and Bond Z. Each band matures in 4 years, has a face value of $1,000,
An investor has two bonds in her poitinlio Pond C and Bond Z. Each band matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.9%. Bond C pays a 12.5% annual coupon, while Bond Z is a zera coupon bond. a. Assuming that the yield to maturity of each bond remains at 8.9% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answers to the nearest cent. Years to Maturity Price of Bond CPrice of Bond z $ $ $ 2 $ 1 4 3 $ $ $ $ $ 0 $ b. Select the correct graph based on the time path of prices for each bond. A Berd 5600 5300 9900 RT 5400 5300 Y V SZ 5.200 50CO $900 1990 5100 5701 - Yen Serd 51200 51 DCU $300 Bandz Sane $200 11 512001 5 DCD $32 5900 Band The correct sketch is-Select
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