Question: A bond has 10 years until maturity, a coupon rate of 7.2%, and sells for $1,180. Interest is paid annually. (Assume a face value of

A bond has 10 years until maturity, a coupon rate of 7.2%, and sells for $1,180. Interest is paid annually. (Assume a face value of $1,000.) If the bond has a yield to maturity of 10.8% 1 year from now, what will its price be at that time?

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