Bonds current yield and yield to maturity and valuation

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Reference no: EM1314783

A bond has a $1000 par value, 10years to maturity, a 7% annual coupon, and sells for $985.

a) What is its current yield?

b) What is its yield to maturity (YTM)?

c) Assume that the yiel to maturity remains constant for the next 3 years. What will the price be 3 years from today?

Reference no: EM1314783

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