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YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 12 years to maturity, and an 8% annual coupon and sells for

YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 12 years to maturity, and an 8% annual coupon and sells for $980.

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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