If the yield to maturity is 9.7% in one year, the price of this bond in one year will be:

[Q: 6-6638969] Callable Bond Pricing. General Electric (GE) has just issued a twenty-year bond with a par value of $1,000 and a coupon rate of 7.1%, paid semiannually. The nominal one-year interest rate over the next year is 7.7%, compounded semiannually. The bond includes a call provision that allows GE to call the bond in one year at a call premium of $200. In one year, the yield to maturity of the bond will be either 9.7%, compounded semiannually, or 5.7%, compounded semiannually, with equal probability