Coupon payment and also sells the bond

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Rob wishes to sell a bond that has a face value of $1000. The coupon rate on the bond is 4%. Rob bought the bond (from someone else) exactly eight years ago for $920 and wishes to earn a 5% return (yield) on his investment. At what price would he have to now sell the bond so as to have earned the 5% return (yield)? (Rob bought the bond immediately after a coupon payment and also sells the bond immediately after receiving his 8th coupon payment, so he's held the bond for 8 years).

a) 877-917

b) 917-957

c) 957-997

d) 997-1037

e) None of the above

Reference no: EM132577120

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