Question: How much should someone pay for a $1,000 par value bond with a 5% annual coupon and four years to maturity the prevailing Interest rate

How much should someone pay for a $1,000 par value bond with a 5% annual coupon and four years to maturity the prevailing Interest rate 3.50%? A. $1,055

B. $1,956.45

C. $1,000

D. $1,089.04

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