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Bond valuation An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value

Bond valuation

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 8.1%. 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 8.1% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answer to the nearest cent.

Years to Maturity Price of Bond C Price of Bond Z

4 $ $

3 $ $

2 $ $

1 $ $

0 $ $

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