What will the price be four years from now

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Future annual bond value

Problem 1: A 20-year, $1,000 par value bond has a 6% annual payment coupon. The bond currently sells for $894.06. If the yield to maturity remains at its current rate, what will the price be 4 years from now?

a. $905.53

b. $908.92

c. $933.96

d. $959.00

e. $966.13

Reference no: EM132958061

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