Calculate the price of each of the bonds

Reference no: EM1357958

An investor has two bonds in his or her portfolio, Bond C and Bond Z. Each matures in 4 years, has a face value of $1,000, and has a yield to maturity of 9.6 percent. Bond C pays a 10 percent annual coupon, while Bond Z is a zero coupon bond. Assuming that the yield to maturity of each bond remains 9.6 over the next four years, calculate the price of each of the bonds at the following years to maturity:

Reference no: EM1357958

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