3. A 7% coupon bond with a par value of $1,000 has a 9% yield to maturity. What is the bond price if it has one year remaining to maturity? O A. $1,028.85 O B. $1,018.69 OC O C. $990.57 O D. $981.65 Previous page 27 28 29 30 31 Next page Assume the following: Year 1-year bond rate Multi-year bond rate 11 3% 3% 2 4% 5% 3. 5% 6% The liquidity premium for the 3-year bond is equal to: O A 1.5% OB. 2.5% O C. 3% OD 2%