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Problem 7-2 Yield to maturity and future price A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and

Problem 7-2 Yield to maturity and future price

A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110.

a. What is its yield to maturity (YTM)? Round your answer to two decimal places. 7.57 %

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

Got part A, need part B

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