Question: How much should you pay for a $1,000 par value bond with a 6% annual coupon and five years to maturity if the prevailing interest

How much should you pay for a $1,000 par value bond with a 6% annual coupon and five years to maturity if the prevailing interest rate is 4%?


$869.34


$1,956.45


$1,000


$1,089.041 

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