Suppose your friend is debating purchasing a bond that has a $1,000 par value, 12 years to maturity, and a 6% annual coupon. Your friend would like to determine the yield to maturity if the bond sells for a price of $943.

What is the yield to maturity for this bond?

5.46%

6.71%

7.91%

8.33%

Assume the yield to maturity remains constant over the next four years. What will the price of the bond be four years from now?

$868.42

$919.20

$957.33

$1,060