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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,

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 9.0%. Bond C pays a 12.5% annual coupon, while Bond Z is a zero coupon bond.

A. Assuming that the yield to maturity of each bond remains at 9.0% 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 $ $

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