The yield to maturity remains constant for next three years

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A bond has a $1,000 par value, 12 years to maturity, and a 8% annual coupon and sells for $980.

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

%

b. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Round your answer to the nearest cent.

 

$

Reference no: EM13971192

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