A Ford Motor Co. coupon bond has a coupon rate of 6.5%, and pays annual coupons. The

next coupon is due tomorrow and the bond matures 26 years from tomorrow. The yield

on the bond issue is 6.1%. At what price should this bond trade today, assuming a face

value of $1,000?

a.

The price of the bond today should be $1,116.51

I am repeatedly getting an answer of $1051.51

Which answer is correct?