problem 7.15 bond valuation

Attempts: Average: /1 5. Problem 7.15 (Bond Valuation) A-Z eBook Problem Walk-Through Bond X is noncallable and has 20 years to maturity, a 8% annual coupon, and a $1,000 par value. Your required return on Bond X is 9%; 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 9.5%. 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.) Do not round Intermediate calculations, Round your answer to the nearest cent