Question: A bond has a $ 1 , 0 0 0 par value, 1 2 years to maturity and an 8 % coupon rate with interest

A bond has a $1,000 par value, 12 years to maturity and an 8% coupon rate with interest paid
annually. Its current market price is $1,080.
a. What is its yield to maturity (YTM)?
b. Assume that the yield to maturity remains constant for the next three years. What will the
market price be 3 years from today?

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