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Suppose a 1 0 1 0 - year, $ 1 comma 0 0 0 1 , 0 0 0 bond with a coupon rate of

Suppose a
1010-year,
$1 comma 0001,000
bond with a coupon rate of
8.1%8.1%
and semiannual coupons is trading for
$1 comma 034.311,034.31.
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
9.7%9.7%
APR, what will be the bond's price?

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