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Over the past year (from one year ago to today), the inflation rate was 3.61%...

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Finance

Over the past year (from one year ago to today), the inflation rate was 3.61% the risk-free rate was 5.89% and the real rate of return for a bond was 10.13%. The bond is currently priced at $945.00 pays annual coupons of $125.00 and just made a coupon payment. What was the price of the bond one year ago?

$937.73 (plus or minus $1.00) $977.17 (plus or minus $1.00) $971.58 (plus or minus $1.00) $922.25 (plus or minus $1.00) None

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