Question: A bond with face value $1,000 has a coupon rate of 8%, maturity 10 years, and yield to maturity of 7%. (Q L06-1) If interest

  1. A bond with face value $1,000 has a coupon rate of 8%, maturity 10 years, and yield to maturity of 7%. (Q L06-1)
  1. If interest is paid annually, what is the bond's price?
  2. If the bond is selling at $970, is its yield to maturity more or less than 8%?

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