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Please help me answer the following question with clear answers. Please do parts a and b. Thank you Question 6 Suppose a 10-year, $1,000 bond
Please help me answer the following question with clear answers. Please do parts a and b. Thank you
Question 6
Suppose a 10-year, $1,000 bond with an 8.4% coupon rate and semi-annual coupons is trading for a price of $1,034.15. a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? b. If the bond's yield to maturity changes to 9.9% APR, what will the bond's price be? a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? The bond's yield to maturity is %. (Round to two decimal places.)Step by Step Solution
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