YIELD TO MATURITY AND FUTURE PRICEA bond has a $1,000 par value, 8 years to maturity, and
YIELD TO MATURITY AND FUTURE PRICE
A bond has a $1,000 par value, 8 years to maturity, and
a 6% annual coupon and sells for $930.
- 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 4 years. What will the price be 4 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.