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A 3-year bond has a face value of $1000 and pays annual coupons of 4.30%. You find that the 1-year spot rate is 6.08%, the
A 3-year bond has a face value of $1000 and pays annual coupons of 4.30%. You find that the 1-year spot rate is 6.08%, the 2-year spot rate is 6.98% and the 3-year spot rate is 3.88%. Assuming that the expectations hypothesis is correct, what will the bond's price be next year, immediately after the first coupon has been paid
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