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YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for
YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985.
A. What is its yield to maturity (YTM)?
B. Assume that the yield to maturity remains constant for the next three years. What will the price be 3 years from today?
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