Homework 7 & 8; Show all calculations Chapter 7 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 8.2%. Bond C pays an 11.5% annual coupon, while Bond Z is a zero-coupon bond. a. Assuming that the yield to maturity of each bond remains at 8.2% over the next 4 years, calculate the price of the bonds at each of the following years to maturity: Time Years to Maturity Price of Bond Price of Bond Z t=0 4 t=1 3 t=2 2 t=3 1 t=4 0 b. Plot the time path of prices for each bond