Question
1.) Suppose a ten-year, $1,000 bond with an 8.0% coupon rate and semiannual coupons is trading for $1,034.74. a. What is the bond's yield to
1.) Suppose a ten-year, $1,000 bond with an 8.0% coupon rate and semiannual coupons is trading for $1,034.74.
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 9.0% APR, what will be the bond's price?
2.) Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and semiannual coupons is trading for $1,035.05.
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 9.8% APR, what will be the bond's price?
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
7th Edition
0321122356, 978-0321122353
