Multiple Choice
You have purchased a 4-year maturity bond with a 9% coupon rate paid annually.The bond has a par value of $1,000.What would the price of the bond be one year from now if the implied forward rates stay the same?
A) $995.63
B) $1,108.88
C) $1,000.00
D) $1,042.78
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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