Question: Student Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.4 percent paid semi-annually and 12 years to maturity. The yield

Student Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.4 percent paid semi-annually and 12 years to maturity. The yield to maturity of the bond is 4.8 percent.

(a) What is the price of the bond?

(b) If interest rates remain unchanged, what do you expect the price of the bond to be one year from now?

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