A Twenty Year Bond with a $1000 Face Value Was

question 12

Multiple Choice

A twenty year bond with a $1000 face value was issued with a yield to maturity of 4.5% and pays coupons semi-annually.After ten years,the yield to maturity is still 4.5% and the clean price of the bond is $960.09.After three more months go by,what would you expect the dirty price to be?

• A)$960.09
• B)$970.09
• C)$980.09
• D)Cannot be determined from information given.

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