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eBook An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of

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eBook 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 8.4%. Bond C pays a 10% annual coupon, while Bond Z is a zero coupon bond. a. Assuming that the yield to maturity of each bond remains at 8.4% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond z 4 $ 3 $ $ 2 $ 1 $ 0 $ $ b. Select the correct graph based on the time path of prices for each bond. A Bond Price $1.200 Bond Z $1.000 $800 Bond C $600 $400 $200 Years to Maturity B Bond C Bond Price! $1200 $1.000 $800 $600 Bond Z $400 $200 4 3 1 Years to Maturity Bond C Bond Price! $1.200 $1.000 $800 $600 $400 Bond Z $200 Years to Maturity D Bond Price $1.200 Bond Z $1.000 $800 $600 Bond C $400 $200 4 3 Years to Maturity

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