What must be the price at which the bond was sold

Reference no: EM13289358

An investor buys a ten-year, $1,000 par value, 5.5% coupon bond for $1,025.50. He holds it for exactly one year, and then he sells it (immediately after receiving the first coupon payment). You determine that the investor's annual rate of return for the year was 2.44%. What must be the price at which the bond was sold?

1.$904
2.$933
3.$996
4.$1051

Reference no: EM13289358

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