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An investor has two bonds in their portfolio l, Bond C and Bond Z. Each bond...

An investor has two bonds in their portfolio l, Bond C and Bond Z. Each bond matured in 4 years, has a face value of $1000, 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.
4.
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B. Plot the time path or prices for each bond.
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