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Which is the following is the correct graph? Problem 7-6 Bond valuation An investor has two bonds in her portfolio, Bond C and Bond Z.

image text in transcribedWhich is the following is the correct graph?

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Problem 7-6 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 12% 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 s

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