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 9.2%. Bond C pays a 10.5% annual coupon, while Bond Z is a zero coupon bond.

1. Assuming that the yield to maturity of each bond remains at 9.2% 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
   4	$	$
   3	$	$
   2	$	$
   1	$	$
   0	$	$

2. Select the correct graph based on the time path of prices for each bond. The correct sketch is -Select-ABCDItem 11 .
3. 

$200 Years to Maturity Bond Price! $1.200 Bond C $1.000 $800 $600 Bond Z $400 $200 2 Years to Maturity D Bond Z Bond Price $1.200 $1.000 $800 $600 Bond C $400 $200 1 Years to Maturity The correct sketch is -Select- V $ 0 $ b. Select the correct graph based on the time path of prices f A Bond Price $1.200 Bond Z $1.000 $800 $600 Bond C $400 $200 Years to Maturity B Bond Price) $1.200 Bond C $1.000 $800 $600 Bond Z $400 $200 14 3 1 Years to Maturity