If you purchase a 3-year, 9% annual coupon bond for $1,002.03, how much could it be sold for 2 years later if interest rates have remained stable?

Name: If you purchase a 3-year, 9% annual coupon bond for $1,002.03, how much could it be sold for 2 years later if interest rates have remained stable?
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Quizplus · Accepted Answer

Using a financial calculator:n = 3; PV = -$1,002.03, PMT - $90; FV = $1,000; CPT i = 8.9199%n = 1; i = 8.9199; PMT = $90; FV = $1,000; CPT PV = $1,000.74

If You Purchase a 3-Year, 9% Annual Coupon Bond for $1,002.03