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Bond valuation 9-3: Bond Valuation Bond valuation An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4

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Bond valuation

9-3: Bond Valuation Bond valuation 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 matutity: of 8.1%. Bond C pays a:12% annual coupon, while Bond Z is a zero coupon bond. a. Assuming that the yield to maturity of each bond remains at 8.1% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Rnd your answer to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z

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