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Assume you have a 1-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature

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Assume you have a 1-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 10 years. The first is a zero-coupon bond that pays $1,000 at maturity. The second has an 10.0% coupon rate and pays the $100 coupon once per year. The third has a 12.0% coupon rate and pays the $120 coupon once per year. a. If all three bonds are now priced to yield 8% to maturity, what are the prices of: () the zero-coupon bond: (i) the 10.0% coupon bond; CHI) the 12.0% coupon bond? (Round your answers to 2 decimal places.) Zero Answer is not complete. 10% 12% Coupon Coupon Coupon $ 463.19 $ 1,134.20 Current prices b. If you expect their yields to maturity to be 8% at the beginning of next year, what will be the price of each bond? (Round your answers to 2 decimal places.) Zero Coupon 10% Coupon 12% Coupon Price 1 year from now

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