Bonds current yield and yield to maturity and valuation
A bond has a $1000 par value, 10years to maturity, a 7% annual coupon, and sells for $985.
a) What is its current yield?
b) What is its yield to maturity (YTM)?
c) Assume that the yiel to maturity remains constant for the next 3 years. What will the price be 3 years from today?