What will be the price of each of the bonds

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Reference no: EM131957781

An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity equal to 9.6%. One bond, Bond C, pays an annual coupon of 10%; the other bond, Bond Z, is a zero coupon bond.

Assuming that the yield to maturity of each bond remains at 9.6% over the next 4 years, what will be the price of each of the bonds at the following time periods? Assume time 0 is today.

Fill in the following table. Round your answers to the nearest cent.

How do i figure out the answer using excel what if analysis data table?

t	price of bond c	price of bond z
0
1
2
3
4

Reference no: EM131957781

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