Consider a $1,000 par value bond with a 9% annual coupon. The bond pays interest annually. There are 20 years remaining until maturity. You have expectations that in 5 years the YTM on a 15-year bond with similar risk will be 10%. You plan to purchase the bond now and hold it for 5 years. Your required return on this bond is 11%. How much would you be willing to pay for this bond today? (hint: find the expected bond value in 5 years) Select one: O a. $ 915 b. $ 854 c. $ 881 d. $ 608 O e. $ 849 IBM issues bonds with a sinking fund provision that the company can call 7% of the bonds at par value or the company can buy the required bonds on the open market. IBM will choose to call back bonds for redemption at par value if the bonds are traded at in the market. Select one: a. $ 850 b. $ 949 c. $ 990 d. $ 956 e. $1053