Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for $1034.74.

Question:

a. What is the bond’s yield to maturity (expressed as an APR with semiannual compounding)?

b. If the bond’s yield to maturity changes to 9% APR, what will the bond’s price be?

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Corporate Finance

ISBN: 9780273792024

3rd Global Edition

Authors: Peter Demarzo, Jonathan Berk

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Question Posted: Jun 11, 2024 01:04 AM

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Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for $1034.74.

Question:

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Corporate Finance

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