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7. Problem 7.15 (Bond Valuation) Band X is noncaliable and has 20 years to maturity, a 10% annual coupon, and a $1,000 par value. Your
7. Problem 7.15 (Bond Valuation) Band X is noncaliable and has 20 years to maturity, a 10% annual coupon, and a $1,000 par value. Your required retum on fond X is 11% if you buy it, you plan to hold it for 5 . yoars. You (and the market) have expectations that in 5 yesrs, the yield to maturity on a is-year bond with similar risk wit be 9.5%. How much should you be winng to pay for Hlond X today? (Hint: You will need to know how much the bend will be worth at the end of 5 years.) Do not round intermediate calculations. Rlound your answer to the nearest cent
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