Consider a $1,000 par value bond with a 7% annual coupon. The bond pays interest annually. There are 20 years remaining until maturity. You have expectations that in 5 years the YTM on a 15-year bond with similar risk will be 7.5%.

What is the expected bond value in 5 years? Please show how to calcuate the problem with a Financial Calculator

a) $956

b) $1042

c) $1132

d) $1153

e) $949