Question: Problem 7.02 YIELD TO MATURITY AND FUTURE PRICE...... 2.. Problem 7.02 I Problem Walk-Through YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000

Problem 7.02YIELD TO MATURITY AND FUTURE PRICE...... 2.. Problem 7.02 I

Problem 7.02

YIELD TO MATURITY AND FUTURE PRICE......

2.. Problem 7.02 I Problem Walk-Through YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 15 years to maturity, and a 8% annual coupon and sells for $1,080. a. What is its yield to maturity (YTM)? Round your answer to two decimal places. l:| % b. Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $

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