Question

By how much will a bond increase in price over the next year if it currently...

By how much will a bond increase in price over the next year if it currently sells for $920.21, has two years until maturity, and an annual coupon rate of 7%?   The yield-to-maturity is currently 6%. Interest is paid annually.

increase of $8.26

decrease of $67.44

increase of $89.22

no change in price

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