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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 12.5% annual coupon, while Bond Z is a zero coupon bond.   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 answers to the nearest cent.   Years to Maturity Price of Bond C Price of Bond Z 4 $   $   3 $   $   2 $   $   1 $   $   0 $   $

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 12.5% annual coupon, while Bond Z is a zero coupon bond.   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 answers to the nearest cent.   Years to Maturity Price of Bond C Price of Bond Z 4 $   $   3 $   $   2 $   $   1 $   $   0 $   $

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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 12.5% annual coupon, while Bond Z is a zero coupon bond.

 

  1. 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 answers to the nearest cent.

     

    Years to Maturity Price of Bond C Price of Bond Z
    4 $   $  
    3 $   $  
    2 $   $  
    1 $   $  
    0 $   $  
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