Question: A 6 year bond issued today by Elpha, Inc. has a coupon rate of 8%, a required return of 3% and a face value of

A 6 year bond issued today by Elpha, Inc. has a coupon rate of 8%, a required return of 3% and a face value of $1000. The bond will be sold 2 years from now when interest rates will be 4%. What is the beginning value of the bond when it is issued (to the nearest dollar)?

Group of answer choices

$1,271

$1,196

$1,208

$1,312

$1,000

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