Assuming that the yield to maturity of each bond remains

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Reference no: EM13971220

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 a 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. Round your answer to the nearest cent.

Years to Maturity Price of Bond C Price of Bond Z

4 $ $

3 $ $

2 $ $

1 $ $

0 $ $

Reference no: EM13971220

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