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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 9.5%. Bond C pays a 10.5% annual coupon, while Bond z is a zern coupon bond. a. Assuming that the yield to maturity of each bond remains at 9.5% 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 MaturityPrice of Bond CPrice of Bond z 3 1 0 b. Select the correct graph based on the time path of prices for each bond. B Bond Price! $1200 Bond Price! Bond Z $1200 Bond C $1.000 5800 $1.000 $800 $600 Bond C $400 $600 $400 $200 $200 Sond Z 3 3 1 Years to Maturity Years to Maturity C D Bond Price] $1.200 Bond Z Bond Price $12001 $1.000 Bond $800 $1.000 $800 $600 Bond Bond Z $400 5600 $400 $200 $200 1 3 Years to Maturity Years to Maturity
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