(Solution) - An investor has two bonds in his or her portfolio -(2025 Original AI-Free Solution)

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An investor has two bonds in his or her portfolio, Bond C and Bond Z. Each matures in 4 years, has a face value of $1,000 and has a yield to maturity of 9.6 percent. Bond C pays a 10 percent annual coupon, while Bond Z is a zero coupon bond. Assuming that the yield to maturity of each bond remains 9.6% over the next four years, calculate the price of each of the bonds at the following years to maturity:
Years to following years to maturity: