1

A bond is issued at par ($1,000.00) and has 10 years remaining to maturity. The bond bears interest at 7% and the yield to maturity (YTM) is 6%. Interest is paid semiannually. The price of the bond is:

• 1,065.40
• 1,072.39
• 1,074.39
• 1,076.46

None of the above