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two bonds each mature 4 years from today and have YTM of 7%. Bond Z has a 0% coupon rate and Bond c has a

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two bonds each mature 4 years from today and have YTM of 7%. Bond Z has a 0% coupon rate and Bond c has a 10% coupon rate. Assuming the YTM for both remains at 7%, calculate the price of each bond today and at the end of 4 years.

$875. If the yield to maturity remains at its current rate, what will the price be 3 years now? 9. Two bonds each mature 4 years from today and have a YTM of 7%. Bond Z has a 0 and Bond C has a 10% coupon rate. Assuming the YTM for both remains at 7%, calo each bond today, and at the end of the next 4 years. (In Excel: Complete the first row changing the number of periods). Bond Z Bond C Time Today Year 1 Year 2 Year 3

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