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7.02 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

7.02

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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)? 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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