A 25-year, $1,000 par value bond has an 8.5% annual coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what will the price be 5 years from now?

A. $839.31
B. $860.83
C. $882.90
D. $904.97
E. $927.60


Answer: C

Business

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