eBook

Problem Walk$-$Through

Bond $x$ is noncallable and has $20$ years to maturity, a $7\%$ annual coupon, and a buy it$,$ you plan to hold it for $5$ years. You $($and the market$)$ have expectations th similar risk will be $5\mathrm{.}5\%.$ How much should you be willing to pay for Bond $x$ tod at the end of $5$ years.$)$ Do not round intermediate calculations. Round your ans.

$$