Bond X is noncallable and has $20$ years to maturity, a $9\%$ annual

coupon, and a $$1,000$ par value. Your required return on Bond X 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 $15-$year bond with similar risk will be $85\%.$ How much should you be

willing to pay for Bond X today? $($Hint: You will need to know how much the bond will be

worth at the end of $5$ years.$)$

Solve with BA$2$ Plus Calculator