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You would like to buy a quarterly compounding 1 4 - year, $ 1 , 0 0 0 par value bond. The an coupon rate

You would like to buy a quarterly compounding 14-year, $1,000 par value bond. The an coupon rate on this bond is 9 percent. If the current yield to maturity of the bond is a 1 percent, what is the value of this bond? After one year, would it be higher or lower than current value of the bond? $860; LowerO $860; Higher 3858: Higher $858; Lower

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