BOND VALUATIONAn 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 9.6%. Bond C pays a 10% annual coupon, while Bond Z is a zero coupon bond.

a. Assuming that the yield to maturity of each bond remains at 9.6% over the next 4 years, calculate the price of the bonds at each of the following years to maturity:

YearPrice CPrice Z

01012.79693.0392

11010.018759.5709

21006.98832.4897

31003.65912.4088

410001000

Can you explain to me if this table is wrong? I completed this problem but some other sources are saying the opposite (year 0 should be year 4), I know the numbers are right, but unclear on how to explain the information. Is the "face value" the starting price of the bond, or is that what the bond amounts to after it matures? Thank you in advance.