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A bond has face value of $1,000, coupon rate of 6%, makes coupon payments annually, and matures in 5 years. Based on current interest rates,
A bond has face value of $1,000, coupon rate of 6%, makes coupon payments annually, and matures in 5 years. Based on current interest rates, the YTM is 6%. However, you expect interest rates to rise in 2 years. When that happens, the YTM for the bond will go up from 6% to 8%. Find bond value one year from today. Group of answer choices $951.38 $954.13 $945.21 $891.81
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