What is its yield to maturity

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Reference no: EM131597486

A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985.

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 2 years. What will the price be 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM131597486

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