You just purchased a 15-year bond with an 11 percent annual coupon. The bond has a face value of $1,000 and a current yield of 10 percent. Assuming that the yield to maturity of 9.7072 percent remains constant, what will be the price of the bond one year from now?

You just purchased a 15-year bond with an 11 percent annual coupon.  The bond has a face value of $1,000 and a current yield of 10 percent. Assuming that the yield to maturity of 9.7072 percent remains constant, what will be the price of the bond one year from now?




a. $1,000
b. $1,064
c. $1,097
d. $1,100
e. $1,150








Answer: C


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