Bond X has 20 years to maturity, a 11% annual coupon, and a $1,000 par value. The market return on Bond X is 8%, and if you buy it you plan to hold it for 5 years.
You, and the market, have expectations that in 5 years the yield to maturity on a 15-year bond with similar risk will be 10.5%. How much should you be willing to pay for Bond X today?