A Treasury coupon bond has 5-year to maturity with a face value of $1,000 and a current market price of $1,153.99. The bonds pay coupon annually and have a yield to maturity of 4 percent. Jake, a bond speculator, just purchased the bond at the current market price. What will be the YTM in one year if his prediction is accurate? And what will be the market price in one year if the YTM stays at 4%?

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