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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,

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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, and has a yield to maturity of 8.0%. Bond C pays a 12.5% annual coupon, while Bond Z is a zero coupon bond. a. Assuming that the yield to maturity of each bond remains at 8.0% 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 0 $ b. Select the correct graph based on the time path of prices for each bond. Bond Price! $1200 Band 7 $1,000 5800 5600 Bond C $400 $200 3 F Years to Maturity Eand Bond Price $1200 $1.000 5800 Bond 2 5600 $400 $200 3 2 1 Years to Maturity Bond Price $1200 Band 2 $1.000 5800 5600 $400 Bond $200 1 Years to Maturity Band Band Price $1200 $1.000 5800 5600 $400 $200 Bond z 3 1 Years to Maturity The correct sketch is-Select

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