Yield to maturity and future price

A bond has a $1,000 par value, 10 years to maturity, and a 8% annual coupon and sells for $980.

1. What is its yield to maturity (YTM)? Round your answer to two decimal places.
   
   _____________ %
2. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Round your answer to the nearest cent.
   
   $ _____________

Answer rating: 100% (QA)

a To find the ytm we need to put the following values in the financ... View the full answer