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Six years ago, Allen Corporation issued bonds that pay annual coupons, have a face value of $1,000, have an annual coupon rate of 8.4 percent,
Six years ago, Allen Corporation issued bonds that pay annual coupons, have a face value of $1,000, have an annual coupon rate of 8.4 percent, and are scheduled to mature in four years. One year ago, you bought one of those bonds for $968. The bond just paid a coupon. If the percentage return on your bond was 5.6 percent over the past year, what is the price of the bond today?
A. $993
B. $968
C. $938
D. $1,022
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