Question: A invests $ 9 0 0 in a five - year bond with a 6 4 annual coupon rate. The bond matures for its par

A invests $

900

in a five

-

year bond with a

64

annual coupon rate. The bond matures for its par value of $

1000 .

The commission to buy this bond is $

10

and no commission is charged when the bond matures. However, if the bond is sold prior to maturity, another commission of $

10

would be paid by the seller. One year later. A wants to sell this bond and still obtain the same yield rate as before. Determine the price at which the bond muse sell for A to achieve this yield rate.

A invests $900 in a five-year bond with a 64 annual

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