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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

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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 maturity of 9.3%. Bond C pays a 10.5% annual coupon, while Bond Z is a zero coupon bond. a. Assuming that the yield to maturity of each bond remains at 9.3% 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 b. Select the correct graph based on the time path of prices for each bond. Bond C Bond Price $1200 T $1,000 58001 $600 $4001 $2001 Bond Z Years to Maturity Bond Z Bond Price! $1200 $1.000 $8001 5600 $4001 $200 Bond Years to Maturity Bond Z Bond Price $1200 $1.000 $8001 $400 $200 Years to Maturity Bond Bond Price $1200 $1.000 $8001 5600 $4001 $2001 Years to Maturity The correct sketch is -Select

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