According to the figure$$ below, as a bond approaches maturity the premium$($or discount$)$ reduces to zero. Prove this by calculating the sales price with $7,5,$ and $2$ years remaining to maturity for the following two bonds. Assume a constant yield to maturity of $8$ percent.

a$.$ A $10-$year, $10$ percent annual coupon bond.

b$.$ A $10-$year, $6$ percent annual coupon bond.