Jason Greg is a recent retiree who is interested in investing some of his savings in corporate bonds. Listed below are the bonds he is considering adding to his portfolio.
Bond A has a 7.5% semiannual coupon, matures in 12 years, and has a $1,000 face value.
Bond B has a 10% semiannual coupon, matures in 12 years, and has a $1,000 face value.
Bond C has an 11.5% semiannual coupon, matures in 12 years, and has a $1,000 face value.
Each bond has a YTM of 10%.
If the yield to maturity for each bond remains at 9%, what will be the price of each bond 1 year from now?