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Recall a bond that you purchased three years ago. It had a 7% coupon, paid interest semiannually, and had 8 years left to maturity at
Recall a bond that you purchased three years ago. It had a 7% coupon, paid interest semiannually, and had 8 years left to maturity at the time you bought it. You paid a price of $895.15 for each $1000 face value of the bond. Today, the yield on that bond is 80 basis points lower than when you purchased the bond, and you sell the bond now. Find the price at which you sell the bond.
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