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1 -Suppose a 10-year, $1,000 bond with a 7% coupon rate and semiannual coupons is trading for a price of $1,114.99. a. What is the
1 -Suppose a 10-year, $1,000 bond with a 7% coupon rate and semiannual coupons is trading for a price of $1,114.99.
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 8% APR, what will the bond's price be? Please show calcuation,
2- Suppose a 5-year, $1,000 bond with annual coupons has a price of $990 and a yield to maturity of 6%.
What is the bond's coupon rate? (please show calculation)
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