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1. Problem 7.02 (Yield to Maturity and Future Price) E eBook Problem Walk-Through A bond has a $1,000 par value, 10 years to maturity, and

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1. Problem 7.02 (Yield to Maturity and Future Price) E eBook Problem Walk-Through A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985. 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 four years. What will the price be 4 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $

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