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  3. a bond has a $1,000 par value, 10 years to maturit

A bond has a $1,000 par value, 10 years to maturity, and a 7% annual...

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Finance

A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985.

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

    %

  2. Assume that the yield to maturity remains constant for the next five 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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