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A bond has face value of $1000, matures in 3 years, has a coupon rate of 10.75% per year, and pays 4 coupons per year.
A bond has face value of $1000, matures in 3 years, has a coupon rate of 10.75% per year, and pays 4 coupons per year. The yield of this bond is 9.75%. What is the value of the bond? Round all intermediate calculations to 6 decimal points. Your final answer should be within 0.05% of the correct answer choice. 1) $1,025.74 2) $974.64 3) $814.71 4) $265.00
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