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21. A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. If the yield to maturity remains

21.

A 25-year, $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 5 years from now? Do not round your intermediate calculations.

a. $856.70

b. $930.11

c. $969.84

d. $1,000.71

e. $918.27

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