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 8.8%. Bond C pays a 12.5% annual coupon, while Bond Z is a zero coupon bond.

1. Assuming that the yield to maturity of each bond remains at 8.8% 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. (Pictures)

Bond Price $1.200 Bond Z $1.000 $800 $600 Bond C $400 $200 st 3 1 Years to Maturity D Bond Price! $1.200 $1.000 Bond C $800 $600 Bond Z $400 $200 14 3 1 6 Years to Maturity A Bond Price! $1.200 Bond C $1.000 $800 $600 Bond Z $400 $200 3 1 6 Years to Maturity B Bond Price! $1.200 Bond Z $1.000 $800 $600 Bond C $400 $200 3 1 Years to Maturity