8. Problem 7.06 (Bond Valuation) EB eBook Problem Walk-Through 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 8.6%. Bond C pays a 10.5% annual coupon, while Bond Z is a zero coupon bond. a. Assuming that the yield to maturity of each bond remains at 8.6% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z $ $ 3 2 $ $ $ $ $ $ 0 b. Select the correct graph based on the time path of prices for each bond. Bond Price) $1.200 Bond C $1.000 $800 $600. Bond Z $400 $200 Years to Maturity B Bond Price $1.200 Bond Z $1.000 $800 $600 Bond C $400 $200 4 3 2 Years to Maturity C Bond Price! $1200 $1.000 Bond C $800 $600 Bond Z $400 $200 1 3 Years to Maturity Bond Price Bond Z $1.200 $1.000 $800 $600 Bond C $400 $200 14 4 3 Years to Maturity The correct sketch is -Select- -Select- A B D