A bond has a $1,000 par value, 10 years to maturity, and a 8% annual coupon and sells for $980.
a. What is its yield to maturity (YTM)? Round your answer to two decimal places.
b. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.