A 25year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. If the yield to maturity remains at its current rate, what will the price be 10 years from now?
a. 
$950.49 

b. 
$930.11 

c. 
$865.00 

d. 
$850.49 

e. 
$1021.11 
As per detials given in the question 
Correct Answer is option A  $950.49
To calculate yield to maturity
Enter the stroke in the financial calculator
Fv = 1000
PV = 925
N = 25
PMT = 85(1000*8.5%)
CPT I/Y = 9.281
If YTM is same, calculate Price of Bond 10 years from now.
Enter Stroke in financial calculator
FV = 1000
PMT = 85
N =10
I/Y = 9.281
CPT PV = 950.49
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