Bond value as maturity approaches

Bond Value as Maturity ApproachesAn investor has two bonds in his portfolio. Each bond matures in 4 years,has a face value of $1,000, and has a yield to maturity equal to 8.6%. Onebond, Bond C, pays an annual coupon of 10.5%; the other bond, Bond Z, isa zero coupon bond. Assuming that the yield to maturity of each bondremains at 8.6% over the next 4 years, what will be the price of each of thebonds at the following time periods? Assume time 0 is today. Fill in thefollowing table

 

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