7.1 Bond Valuation An investor has two bonds in her portfolio, Bond Cand Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity (i.e. the discount rate r) of 9.6%. Bond C pays a 10% annual coupon, while 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, calculate the price of the bonds at each of the following years to maturity: Years to Price of Bond Price of Bond Maturity C 4 2 1