Question
You are considering investing in an 7% coupon rate bond with a three-year maturity and a face value of $1000. You observe the following yield
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You are considering investing in an 7% coupon rate bond with a three-year maturity and a face value of $1000. You observe the following yield curve for discount, or zero-coupon, bonds:
| Maturity | Yield to Maturity |
| 1 | 9.6% |
| 2 | 7.9% |
| 3 | 10.7% |
What is the price of the bond?
(please round your answer to the nearest penny)
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th International Edition
0321552113, 9780321552112
