Answer:
The price of the bond is $1,195.62
Explanation:
Current yield is the ratio of coupon payment of a bond to its current market price. It is calculated by using coupon payment and the current market value of the bond.
Using following formula of current yield we can calculate the price of the bond
Current Yield = Annual Coupon Payment / Current Market Price
Where
Coupon Payment = $1,000 x 9.29% = $92.9
Current Yield = 7.77%
Placing values in te formula
7.77% = $92.9 / Market value of the bond
Market value of bond = $92.90 / 7.77%
Market value of bond = $1,195.62
