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Yield to maturity and future price A bond has a $1,000 par value, 15 years to maturity, and a 8% annual coupon and sells for

Yield to maturity and future price

A bond has a $1,000 par value, 15 years to maturity, and a 8% annual coupon and sells for $1,080.

A.Whatisitsyieldtomaturity(YTM)?Roundyouranswertotwodecimalplaces.

B.Assumethattheyieldtomaturityremainsconstantforthenext3years.Whatwillthepricebe3yearsfromtoday?Donotroundintermediatecalculations.Roundyouranswertothenearestcent.

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