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A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110. 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 two years. What will the price be 2'years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110. 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 two years. What will the price be 2'years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110. 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 two years. What will the price be 2'years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
Transcribed Image Text:A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110. 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 two years. What will the price be 2'years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
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