Question
4. Suppose a five-year, $1,000 bond with a 5.0% coupon rate and semiannual coupons is trading for $1,034.74. What is the bond's yield to maturity
4. Suppose a five-year, $1,000 bond with a 5.0% coupon rate and semiannual coupons is trading for $1,034.74.
What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? (1 point)
If the bond's yield to maturity changes to 7% APR, what will be the bond's price? (1 point)
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Financial Statement Analysis
Authors: Andrew P.C.
1st Edition
1520985002, 978-1520985008
