Future price and yield to maturity

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Yield to maturity and future price

A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110.

A. What is its yield to maturity (YTM)? Round your answer to two decimal places.

%

B. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM131502887

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