Supergirl has a Bond that has a $1,000 par value, 16 years to maturity, and a 9.5% annual coupon that sells for $1,080.

(Answer the following two questions) (Show your calculations) (If using the business calculator, show the function buttons and the amounts).

• What is its yield to maturity (YTM)? (10-points)

• Assume that the yield to maturity remains constant for the next five years. What will the price be 5 years from today? (15-points)

(Hint, you will need to discount the remaining years from the original maturity time and plug in the YTM from the previous question)