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A bond has a $1,000 par value, 10 years to maturity, and an 8% annual coupon...

A bond has a $1,000 par value, 10 years to maturity, and an 8% 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 three years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

$

Solutions

Expert Solution

Hence, Bond yield to maturity is 8.30%

Hence, Bond price in 3 years was $984.54

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jeff jeffy answered 8 months ago
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