An investor has two bonds in their portfolio, Bond A and Bond B. Each of the bonds matures in 2 years, and has a par value of $1,000. Bond A pays an 5% annual coupon and has a yield to maturity of 2.85%, while Bond B pays a 2.5% annual coupon with a yield to maturity of 4.85%. Assuming that the yield to maturity for each bond remains constant, calculate the price of the bonds for each of the following years to maturity.

Years Until Maturity	Bond A	Bond B
2
1
0

What rate of return would you earn on bond A if you bought it with two years until maturity and held it for 1 year?