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An investor has two bonds in his portfolio. Each bond matures in 3 years, has a face value of $1,000, and has a yield to
An investor has two bonds in his portfolio. Each bond matures in 3 years, has a face value of $1,000, and has a yield to maturity of 13.9%. Bond A pays an annual coupon of 18%. Bond Z is a zero coupon bond. Assuming the yield to maturity of each bond remains at 13.9% over the next 4 years, what will be the price of each of the bonds at the following time periods? Fill in the following table (round your answers to the nearest cent):
t Price of Bond A Price of Bond Z 0 $ $ 1 $ $ 2 $ $ 3 $ $
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