Question: Problem 7-2 Yield to maturity and future price A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and

Problem 7-2 Yield to maturity and future price

A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980.

What is its yield to maturity (YTM)? Round your answer to two decimal places. %

Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Round your answer to the nearest cent.

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