Problem: A 10 year bond issued today by Carris, Inc. has a coupon rate of 10%, a required return of 6% and a face value of $1000. The bond will be sold 5 years from now when interest rates will be 8%.
Required:
Question: What is the ending value of the bond when it is sold (to the nearest dollar)?
A. $1,080
B. $1,064
C. $1,000
D. $1,375
Note: Please provide step by step solution.