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Q1. Suppose a ten-year, bond with a face value of $1000 an coupon rate 8.4% p.a. and semiannual coupons is trading for 1034.59 a. What
Q1. Suppose a ten-year, bond with a face value of $1000 an coupon rate 8.4% p.a. and semiannual coupons is trading for 1034.59
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 9.1% APR, what will be the bond's price?
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