A 25-year, $1,000 par value bond has a 9.0% annual payment coupon. The bond currently sells for $905. If the yield to maturity remains at its current rate, what will the price be 5 years from now? Do not round your intermediate calculations. a. $830.95 b. $987.60 c. $897.73 d. $910.86 e. $960.22

A 25-year, $1,000 par value bond has a 9.0% annual payment coupon. The bond currently sells for $905. If the yield to maturity remains at its current rate, what will the price be 5 years from now? Do not round your intermediate calculations. a. $830.95 b. $987.60 c. $897.73 d. $910.86 e. $960.22

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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Question

A 25-year, $1,000 par value bond has a 9.0% annual payment coupon. The bond currently sells for $905. If the yield to
maturity remains at its current rate, what will the price be 5 years from now? Do not round your intermediate
calculations. a. $830.95 b. $987.60 c. $897.73 d. $910.86 e. $960.22

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