Question: 11. Problem 7.06 (Bond Valuation) ebook Problem Walk-Through An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in
11. Problem 7.06 (Bond Valuation) ebook Problem Walk-Through An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a foce value of $1,000, and has a yield to maturity of 8.9%. Bond C pays a 12.5% annual coupon, while Bond Z is a zero coupon bond. a. Assuming that the yield to maturity of each bond remains at 8.9% 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 $ $ 3 $ $ 1 0 $
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