You just started work at a wealth management firm and your boss asks you to evaluate a 6-year bond with a face value of $1,000 that, according to the prospectus, you can purchase next month (01-October-2018) when it is initially issued. The bond is designed to provide a 5.9% yield-to- market (YTM) and makes annual 01 October coupon payments. The underwriter has stated the issuers intention to sell the bonds at face value (par) and your plan is purchase the bonds accordingly for $1,000 apiece, meaning the coupon and the YTM will be the same on the date of sale.

If the YTM is expected to remain constant, what is the minimum priceyou would accept to sell the bond on September 30, 2021, the day before you receive the 3rd coupon payment?

A. $941.51

B. $1,029.50

C. $1,059.00

D. $1,061.00

E. $1,183.00