Question: Please only work on this is you understand it. Please also provide how to solve using excel. 7-6 BOND VALUATION An investor has two bonds

Please only work on this is you understand it. Please also provide how to solve using excel.

Please only work on this is you understand it. Please also provide

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 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: b. Plot the time path of prices for each bond

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