1. a. Bond valuation Bond X is noncallable and has 20 years to maturity, a 9% annual coupon, and a $1,000 par value. You

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1.
a. Bond valuation
Bond X is noncallable and has 20 years to maturity, a 9% annual
coupon, and a $1,000 par value. Your required return on Bond X is
9%; and if you buy it, you plan to hold it for 5 years. You (and
the market) have expectations that in 5, years the yield to
maturity on a 15-year bond with similar risk will be 11%. How much
should you be willing to pay for Bond X today? (Hint: You will need
to know how much the bond will be worth at the end of 5 years.)
Round your answer to the nearest cent.
$ _____