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# A bond has a \$1,000 par value, 20 years to maturity, and an 8% annual coupon...

A bond has a \$1,000 par value, 20 years to maturity, and an 8% 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 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

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