If the interest rate increases, the present value of an amount to be received at the end of a fixed period

Select one:

a. Not enough information is given to tell.

b. increases.

c. remains the same.

d. decreases.

Washington Corporation has a $1,000 par value bond outstanding paying annual interest of 6%. The bond matures in 25 years. If the present yield to maturity for this bond is 10%, calculate the current price of the bond. Use annual analysis and round your answer to the nearest dollar.

Select one:

a. $147.

b. $637.

c. $1,000.

d. $1,511.