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BOND VALUATION An investor has two bonds in her portfolio, Bond and Bond Z. Each bond matures in 4 years, has a face value of
BOND VALUATION An investor has two bonds in her portfolio, Bond and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.3%. 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 8.3% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answer to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z 4 $ 2 ILOO IIIN 1 0
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