Question: ABC Corporation has issued a 15-year maturity, $1,000 face value annual coupon bond at par two years ago. The yield to maturity at the time

ABC Corporation has issued a 15-year maturity, $1,000 face value annual coupon bond at par two years ago. The yield to maturity at the time of issue was 8 percent. Today, the company has just paid the annual coupon. What is the current price of the bond assuming that the yield to maturity is now 7 percent?

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