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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 31,000
An investor has two bonds in her portfolio, bond C and Bond Z. Each bond matures in 4 years, has a face value of 31,000 , and has a yeld to maturity of 8.8%. Bond C pays a 12.5% annual coupon, while Bond z is a zero coupon bond. a. Assuming that the yleld 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. b. select the correct graph based on the time path of prices for each bond. b. Select the correct graph based on the time path of prices for each bond. A The correct sketch is
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