eBook Problem Walk$-$Through

A bond has a $$1,000$ par value, $8$ years to maturity, and a $7\%$ annual coupon and sells for $$980.$

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

$\%$

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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