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John purchased a treasury bond with exactly five years until maturity, which pays coupon annually. The bond has a par value of $1,000, a 5%
John purchased a treasury bond with exactly five years until maturity, which pays coupon annually. The bond has a par value of $1,000, a 5% annual coupon rate, and a current yield to maturity (YTM) of 6%. After exactly three years, John sold the bond to another investor, with the yield to maturity of 4%. He was always able to re-invest all his coupon income at a return of 3%. All rates are annual. what is his selling price? (Enter your answer as a decimal rounded to 4 decimal places)
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