What is the price of a coupon bond that has annual coupon payments of $85, a par value of $1000, a yield to maturity of 10%, and a maturity of three years?

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The price of a coupon bond can be calculated using the following formula:```Bond Price = (C / r) * (1 - 1 / (1 + r)^n) + (FV / (1 + r)^n)```where:* C = annual coupon payment* r = yield to maturity* n = number of years to maturity* FV = par valueIn this case, we have:* C = $85* r = 10%* n = 3* FV = $1000Plugging these values into the formula, we get:```Bond Price = (85 / 0.10) * (1 - 1 / (1 + 0.10)^3) + (1000 / (1 + 0.10)^3)= $962.70```Therefore, the price of the coupon bond is $962.70.

What Is the Price of a Coupon Bond That Has