Question

Consider a bond that matures 3 years from today, on June 23, 2023. The coupon rate...

Consider a bond that matures 3 years from today, on June 23, 2023. The coupon rate is 10%. The yield to maturity (the return that bond holders want for an investment of like risk) is 8%. If interest rates (yield to maturity) remain constant, the price of this bond on June 23, 2021 will be _______.

A)​higher than it is on June 23, 2020.

B)​lower than it is on June 23, 2020.

C)​the same as it is on June 23, 2020.

D)​cannot be determined

E)​$1,000

Will this answer be the same as it is on June 23,2020?

I did 100/(1.10)^1+1000/(1.10)^1=1000

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Answer #1

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SOLVED WITH BA II PLUS CALCULATOR

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