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Suppose you buy ADA Co. bonds today with a par value of $1000 and a current market value of $768.00, having 10% yield to maturity.

Suppose you buy ADA Co. bonds today with a par value of $1000 and a current market value of $768.00, having 10% yield to maturity. The bonds mature in 5 years and interest is paid annually. One year from now, when the yield to maturity is 12%, you sell the bond. Answer the following question based on the above information. The annual coupon payment is:

$50

$110

$77

None of the above

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