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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,
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 8.8%. Bond C pays a 10% annual coupon, while Bond Z is a zero coupon bond. a. 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 each of the following years to maturity. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond z 4 3 $ 2 4 4 4 Select the correct graph based on the time path of prices for each bond. Bond Price! $12001 $1,000 $8001 Bond Z $600 $400 T Type here to search o * e @ N - ^ . 49) 4:05 PN 2/28/20 b. Select the correct graph based on the time path of prices for each bond. Bond C Bond Price] $1.2001 $1.000 $800 $600 $400 T Bond Z $200 Years to Maturity Bond Z Bond Price $12001 $1.000 1 $800 $600 $4001 Bond C $200 Years to Maturity Type here to search o * e @ N O A ) 4:05 PM 2/28/2020 Bond C Bond Price $1.2007 $1.0001 $800 T $600 Bond Z $400 $200 Years to Maturity Bond Z Bond Price $1200T $1.000 $800 $600 $400 T $200 Bond C Years to Maturity ype here to search o gi & e H E NU | w 9 A l le 4:05 PM 1) 2/28/2020 F1 ZUU 95 Years to Maturity Bond Price! $1.2007 $1.000 Bond z $8001 Bond C $600 | $400 $200 3 Years to Maturity The correct sketch is -Select
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