Question
4. Suppose a ten-year, $ 1,000 bond with an 8.9 % coupon rate and semiannual coupons is trading for $1,034.94 a. What is the bond's
4. Suppose a ten-year, $ 1,000 bond with an 8.9 % coupon rate and semiannual coupons is trading for $1,034.94 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 9.3 % APR, what will be the bond's price? 5. Suppose a five-year, $ 1,000 bond with annual coupons has a price of $ 900.05 and a yield to maturity of 5.6 %. What is the bond's coupon rate?
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Options Futures And Other Derivatives
Authors: John C. Hull
9th Edition
0133456315, 9780133456318
