If a four year bond with a 7% coupon and a 10% yield to maturity is currently worth $904.90, how much will it be worth one year from now if interest rates are constant?
A)$904.90
B)$925.39
C)$947.93
D)$1,000.00 Using the BAII Plus calculator:

Question

Quizplus · Accepted Answer

The bond's price will increase to $925.39 one year from now because the interest rate is constant and the bond is paying a coupon that is higher than the yield to maturity.

If a Four Year Bond with a 7% Coupon and a 10