One year ago a $1,000 face value 6% coupon bond was selling for $918.93. Since then, the market return decreased by two percentage points. The bond pays interest semiannually and now has four years to maturity. The bond's price today is:
A) $1,035.46.
B) $1,053.27.
C) $1,000.00.
D) $932.67.
Correct Answer:
Verified
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