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A bond has a $1,000 par value, 7 years to maturity; a 6 percent annual coupon, and sells for $975. What is its current yield?

A bond has a $1,000 par value, 7 years to maturity; a 6 percent annual coupon, and sells for $975.

What is its current yield?

What is its yield to maturity (YTM)?

Assume the yield to maturity remains constant for the next 5 years. What will the price be 5 years from now?

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