Multiple Choice
The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. 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
Correct Answer:

Verified
Correct Answer:
Verified
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