Problem Walk$-$Through

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 $8\mathrm{.}4\%.$ Bond C pays a $12\mathrm{.}5\%$ annual coupon, while Bond $Z$ is a zero coupon bond.

a$.$ Assuming that the yield to maturity of each bond remains at $8\mathrm{.}4\%$ 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

$\backslash$table$[[4,$$$,$$$,],[3,$$$,$$$,],[2,$$$,$$$,],[1,$$$,$$$,],[0,$$$,$$$,]]$

b$.$ Select the correct graph based on the time path of prices for each bond.