What is yield to maturity and price three years from today


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

a) What is its yield to maturity?

b) Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today?

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Finance Basics: What is yield to maturity and price three years from today
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