E

A bond has a $$1,000$ par value, $10$ years to maturity, and an $8\%$ annual coupon and sells for $$980.$

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

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b$.$ Assume that the yield to maturity remains constant for the next five years. What will the price be $5$ years from today? Do not round intermediate calculations. Round your

answer to the nearest cent.

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