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YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 8 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, 8 years to maturity, and a 7% annual coupon and sells for $980.
- What is its yield to maturity (YTM)? Round your answer to two decimal places. %
- Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $
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Financial Markets And Institutions
Authors: Jeff Madura
13th Edition
0357130790, 978-0357130797
