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Assume you have a one-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 one-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 a 7.5% coupon rate and pays the $75 coupon once per year. The third has a 9.5% coupon rate and pays the $95 coupon once per year. Assume that all bonds are compounded annually. a. it all three bonds are now priced to yield 7 5% to maturity, what are their prices? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero 7.5% Cou Current prices b-1. If you expect their yields to maturity to be 75% at he beginning of next year, what will their prices be then? Do not round intermediate calculations. Round your answers to 2 decimal places.) 7.596 Cou Price one year from now b-2. What is your rate of return on each bond during the one-year holding period? (Do not round intermediate calculations. Round your answers to 2 decimal places.]) 7.5% Coupon 9.596 Cou Rate of return

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