A $1,000 face value bond currently has a yield to maturity of 8.22 percent. The bond matures in five years and pays interest semiannually. The coupon rate is7.5 percent. What is the current price of this bond?

A. $948.01
B. $989.60
C. $1,005.26
D. $970.96
E. $1,010.13

Answer: D. $970.96

Business

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