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Bond of Jane Co . has 1 5 years to maturity, an 6 % annual coupon, and a $ 1 , 0 0 0 par

Bond of Jane Co. has 15 years to maturity, an 6% annual coupon, and a $1,000 par value. Your required return on the bond is 10%; if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5 years, the yield to maturity on a 10-year bond with similar risk will be 9.5%. How much should you be willing to pay for the bond today?

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