Question: please solve this question with solutions Consider a two year coupon bond issued today with a face value of $1,000 and a 6% coupon rate.

please solve this question with solutions Consider a two year coupon bond issued today with a face value of $1,000 and a 6% coupon rate. Suppose that yields on zero coupon bonds with terms one and two are 6% and 7% respectively. What is your best estimate of the price of the bond next year after the first coupon? A) *$981.40 B) $982.45 C) $985.25 D) $992.50 E) $962.25

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