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A corporate bond maturing in 15 years with a coupon rate of 7.9 percent was purchased...

A corporate bond maturing in 15 years with a coupon rate of 7.9 percent was purchased for $950 and it now selling for $980. What will be its selling price in two years if comparable market interest rates drop 1.9 percentage points? (Hint: Use Appendix A-2 and Appendix A-4 or the Garman/Forgue companion website.) Round Present Value of a Single Amount and Present Value of Series of Equal Amounts in intermediate calculations to four decimal places. Calculate the bond's YTM using Equation 14.5 or the Garman/Forgue companion website. Round your answer to two decimal places.

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the bond current price is 980 with 15 years to maturity Coupon rate = 7.9% Coupon payment (1000 is the assmed face value) (0.

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