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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 9.4%. Bond C pays a 11.5% annual coupon, while
Bond Z is a zero coupon bond.
Assuming that the yield to maturity of each bond remains at 9.4%
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
Years to Maturity
Price of Bond C
Price of Bond Z