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.

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
4	$	$
3	$	$
2	$	$
1	$	$
0	$	$

Select the correct graph based on the time path of prices for each bond.

The correct sketch is -