Find price of bond if yield to maturity is at current rate


A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $900. If the yield to maturity remains at its current rate, what will the price be 5 years from now?

a. $1,069.75
b. $698.06
c. $1,096.95
d. $906.57
e. $688.99

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Finance Basics: Find price of bond if yield to maturity is at current rate
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