Question

A corporation has a bond outstanding that makes semiannual coupon interest payments. The coupon rate for...

A corporation has a bond outstanding that makes semiannual coupon interest payments. The coupon rate for the bond is 3.2 percent, the YTM (yield to maturity) is 4.5 percent, the par value is $1,000 and the bond has 12 years to maturity. If interest rates remain unchanged, what will the price of the bond be in 3 years?

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