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Suppose that you purchase at par a $1,000 4-year bond with an annual 5.6% coupon rate. Yields on comparable bonds are 5.6%. You expect that,

image text in transcribed Suppose that you purchase at par a \$1,000 4-year bond with an annual 5.6\% coupon rate. Yields on comparable bonds are 5.6\%. You expect that, two years from now, yields on comparable bonds will have changed to 7.2%. Compute the expected sales price of the bond at the end of the second year. Use no symbols, commas, or formatting, and round your anwer to 2 decimals. Your Answer: 713.58

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