Assume that yield to maturity remains constant

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Reference no: EM131314023

Yield to maturity and future price

A bond has a $1,000 par value, 20 years to maturity, and a 8% annual coupon and sells for $1,110.

What is its yield to maturity (YTM)? Round your answer to two decimal places.

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Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

$----

Reference no: EM131314023

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