Question 6
A 4.01\% annual coupon, 12-year bond has a yield to maturity of \( 9.81 \% \). Assuming the par value is \( \$ 1,000 \) and the YTM is expected not to change over the next year, what should the price of the bond be today?
Question 7
A 6.24\% annual coupon, 5 -year bond has a yield to maturity of \( 6.62 \% \). Assuming the par value is \( \$ 1,000 \) and the YTM is expected not to change over the next year, what is bond price expected to be in one year?