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Bond valuation Bond C Bond Z Length of maturity in years Face value Yield to maturity Annual coupon $1,000 8.30% 11.50% $1,000 8.30% 0.00% Formulas

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Bond valuation Bond C Bond Z Length of maturity in years Face value Yield to maturity Annual coupon $1,000 8.30% 11.50% $1,000 8.30% 0.00% Formulas Price of Bond C Price of Bond Z Price of Bond C #N/A #N/A #N/A #N/A #N/A Price of Bond Z #N/A #N/A #N/A #N/A Years to Maturity Time Paths of Bonds C and Z Bond Value $350 -Bond C Bond Z $0 Years Remaining Until Maturity Excel Online Structured Activity: 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 8.3%. Bond C pays a 11.5% annual coupon, while Bond Z is a zero coupon bond. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Assuming that the yield o maturity of each bond remains at 8.3% over the next 4 years, calculate t e price of he bonds at each of the Ollowing years to maturity. Do not round intermediate ca answers to the nearest cent. lations. our n Years to Maturity Price of Bond C Price of Bond Z

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