Suppose you purchase a bond that has an 8,5% annual payment coupon. The bond has a par value of R1 000 and a maturity of 25 years, for R925. If the yield to maturity on the bond remains unchanged, what will be the price of the bond five years from now?
1.
R 320,91
2.
R 663,64
3.
R 930,20
4.
R1 953,15