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C 1 year to maturity D 0 year to maturity 7.1 Bond Valuation An investor has two bonds in her portfolio, Bond C and Bond

C 1 year to maturity
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7.1 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 the discount rate is 9.6%. Bond C pays a 10% annual coupon, while Bond Z is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 9.6% over the next 4 years, calculate the prices of Bond C and Z at each of the following years to maturity: a. 4 years to maturity b. 3 years to maturity C. 1 years to maturity d. O years to maturity

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