Question: Re answer this question and show solution steps XYZ has a $1000 Face Value 5% Coupon Bond (paid semi-annually). The bond is selling for $937.19

Re answer this question and show solution steps

XYZ has a $1000 Face Value 5% Coupon Bond (paid semi-annually). The bond is selling for $937.19 today and matures in 8 years. (The YTM today is 6.0%) a) What will be the price of the bond in 2 years (the bonds now have 6 years left until maturity) if the YTM investors demand in 2 years is still 6.0%? b) What will be the price of the bond in 2 years (the bonds now have 6 years left until maturity) if the YTM investors demand in 2 years is 5.6%

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