Question: Suppose that Ally Tech Inc. issued a bond with 3 0 years till maturity, a face value of $ 2 , 0 0 0 ,

Suppose that Ally Tech Inc. issued a bond with

30

years till maturity, a face value of $

2, 000,

and a coupon rate of

7 % (

annual payments

) .

The yield to maturity on this bond when it was issued was

4 % .

Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment? Choose the closest answer: A

.

2, 879

.

3, 019

.

3, 038

.

3.159

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