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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 8.7% Bond C pays a 10% annual coupon, while Bond Z is a zero coupon bend. a. Assuming that the yield to maturity of each bond remains at 9.7% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answer to the nearest cent. Select the correct graph based on the time path of prices for each bond
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