Question: Suppose your friend is debating purchasing a bond that has a $ 1 , 0 0 0 par value, 1 3 years to maturity, and

Suppose your friend is debating purchasing a bond that has a $1,000 par value, 13 years to maturity, and a 7% annual coupon. Your friend would like to determine the yield to maturity if the bond sells for a price of $1,310. What is the yield to maturity for this bond? Assume the yield to maturity remains constant over the next four years. What will the price of the bond be four years from now?

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