7-6. BOND VALUATION: An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000and has a yield to maturity of 8.2%. Bond C pays an 11.5% annual coupon, while Bond Z is a zero-coupon bond.

1. If the yield to maturity of each bond remains at 8.2% over the next four years, calculate the price of the bonds at each of the following years to maturity.

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

1. Plot the time path of prices doe each bond.