Question: A bond with face value $1,000 has a current yield of 6.5% and a coupon rate of 8.5%. If interest is paid annually, what is

A bond with face value $1,000 has a current yield of 6.5% and a coupon rate of 8.5%.

If interest is paid annually, what is the bonds price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

If the bond is selling at $965, is its yield to maturity more or less than 8.5%?

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