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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 9.1%. Bond C pays a 11.5% annual coupon, while Bond z is a zero coupon bond. a. Assuming that the yield to maturity of each bond remains at 9.1% 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 $ 1 $ $ s b. Select the correct graph based on the time path of prices for each bond. Bond Pike 51200 Bond 51.000 0 5800 Sond Z 5600 $400 5200 Year to Maturity B Bond Price $12001 $1.000 Bond 2 $800 Sond 5600 5400 $200 $ H 3 Yeas to Maturity Bond Price! $1200 $1.000 Bond $800 Bondz 5600 $400 5200 Yeas to Maturity D Bond 2 Bond Price $1200 51.000 $800 5600 $400 Bond 5200 Years to Maturity The correct sketch is -Select
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