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Sam is considering investing in a bond, and found a prospect. It is a 10-year, $1,000 bond with a 9% coupon rate and semiannual coupons.

Sam is considering investing in a bond, and found a prospect. It is a 10-year, $1,000 bond with a 9% coupon rate and semiannual coupons. It is currently trading for a price that implies the bond's value is $976.02.

a. What is the bond's yield to maturity (YTM)?

b. If the bond's YTM changes to 9%, what will the bond's price be (per $1,000 of face)?

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