Problem 7.02 – Solve for YTM & Bond Price

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition, 10th Edition, and 11th Edition

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Calculate the yield to maturity (YTM) of a bond given its par value, maturity period, annual coupon rate, and current market price. Round your answer to two decimal places. Additionally, determine the expected price of the bond a couple years from today, assuming the yield to maturity remains constant. Round your answer to the nearest cent.

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