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A bond with a face value of $1,000 is currently trading at a price of $934. If the bond's YTM remains unchanged, what do you
A bond with a face value of $1,000 is currently trading at a price of $934. If the bond's YTM remains unchanged, what do you expect to happen to the bond's price in one year?
A) The bond's price will be lower than $934
B) The bond's price will be higher than $934 but lower than $1,000
C) The bond's price will be higher than $1,000
D) There is no way to anticipate next year's price.
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