Question: A 1 0 0 0 - par value, 2 2 - year bond with annual coupons redeems for 1 1 0 0 . The first

A 1000-par value, 22-year bond with annual coupons redeems for 1100. The first coupon paid by the
bond is paid at the end of the first year and is in the amount of 50. Each subsequent coupon payment
is 3% greater than the previous one. The bond is priced to yield an annual effective rate of 9%.
Determine the price of the bond.
785
732
759
812
706
A 1000-par value, 22-year bond with annual coupons redeems for 1100.

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