Problem 7-6 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 9.1%. 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 9.1% 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	$ ___	$ ___