Calculate the yield to maturity for a corporate bond issued by DaimlerChrysler with the price of $800.20, where the bond

Calculate the yield to maturity for a corporate bond issued by DaimlerChrysler with the price of $800.20, where the bond

Question:

Calculate the yield to maturity for a corporate bond issued by DaimlerChrysler with the price of $800.20, where the bond has a maturity of 11 years, a face value of $1,000, and an annual interest payment is $70. Assume that interest payments are made annually at the end of each year. What is the future value of the corporate bond? 
a. Should the interest rates decrease to 3%, how many years does the bond take to mature? 
b. If the interest rate decreases to 7%, what should be the annual interest payment for the bond to be sold at the same price of $800.20?

Expert Answer:

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To determine the yield to maturity YTM for the corporate bond issued by DaimlerChrysler and calculat
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