Bond valuation-yield to maturity and future price

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Bond valuation

Callaghan Motors' bonds have 20 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 11.5%, and the yield to maturity is 7%. What is the bond's current market price? Round your answer to the nearest cent.

$

Yield to maturity and future price

A bond has a $1,000 par value, 8 years to maturity, and a 6% annual coupon and sells for $930.

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? Round your answer to the nearest cent.

$

Reference no: EM131583550

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