Question: A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095. a) What is its yield

A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095.

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 4 years. What will the price be 4 years from today? Round your answer to the nearest cent.

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