Bond valuation 1 2 3 4 Length of maturity in years 5 Face value 6 Yield to maturity 7 Annual coupon 8 9 10 11 12 13 14 15 16 17 Years to Maturity 4 32103 B Bond C 4 $1,000 8.70% 10.50% Price of Bond C Bond Z 4 $1,000 *8.70% 0.00% Price of Bond Z E Price of Bond C #N/A #N/A #N/A #N/A #N/A 5 Formulas I Price of Bond Z #N/A #N/A #N/A #N/A #N/A

Bond valuation \begin{tabular}{lrrr} & \multicolumn{1}{c}{ Bond C } & & \multicolumn{1}{c}{ Bond Z } \\ \cline { 2 - 2 } Length of maturity in years & 4 & & 4 \\ Face value & $1,000 & & $1,000 \\ Yield to maturity & 8.70% & & 8.70% \\ Annual coupon & 10.50% & & 0.00% \end{tabular} Formuias Years to Maturity Price of Price of Bond Z \begin{tabular}{|c|} \multicolumn{1}{c}{ For } \\ Price of Bond C \\ \hline HN/A \\ HN/A \\ HN/A \\ HN/A \\ HN/A \end{tabular} Price of Bond Z Bond C Bond Z HN/A WN/A \#N/A \#N/A \#N/A