P6-6 (similar to)

Question Help

Suppose a

10-year,

$1,000

bond with a

8 %

coupon rate and semiannual coupons is trading for a price of

$1,165.28.

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?

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

The YTM is

nothing%.

(Round to two decimal places.)