A bond has a $1,000 par value, 12 years to maturity, and an 8% annual coupon and

Question:

A bond has a $1,000 par value, 12 years to maturity, and an 8% annual coupon and sells for $980.
a. What is its yield to maturity (YTM)?
b. Assume that the yield to maturity remains constant for the next three years. What will the price be 3 years from today?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...