Question: #9 A bond has a $1,000 par value, 20 years to maturity, and a 5% annual coupon and sells for $860. What is its yield

A bond has a $1,000 par value, 20 years to maturity, and a 5% annual coupon and sells for $860.

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 three years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

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