An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures...

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Finance

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 ayield to maturity of 9.3%. Bond C pays a 10.5% annual coupon, whileBond Z is a zero coupon bond. The data has been collected in theMicrosoft Excel Online file below. Open the spreadsheet and performthe required analysis to answer the questions below.
Open spreadsheet
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 ofthe following years to maturity. Do not round intermediatecalculations. 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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3.9 Ratings (772 Votes)

Answer a Bond C Face Value 1000 Annual Coupon 1000105 1050 Annual YTM 93 If Time to Maturity is 4 years Price 105PVIFA930 4 1000PVIF930 4 Price 10511109340093 100010934 Price See Answer

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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 $1,000, and has ayield to maturity of 9.3%. Bond C pays a 10.5% annual coupon, whileBond Z is a zero coupon bond. The data has been collected in theMicrosoft Excel Online file below. Open the spreadsheet and performthe required analysis to answer the questions below.Open spreadsheetAssuming that the yield to maturity of each bond remains at 9.3%over the next 4 years, calculate the price of the bonds at each ofthe following years to maturity. Do not round intermediatecalculations. Round your answers to the nearest cent.Years to MaturityPrice of Bond CPrice of Bond Z4$ $ 3$ $ 2$ $ 1$ $ 0$ $

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