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Suppose a 10 year, 1000.00 bond with a 7% coupon rate and semiannual coupons is trading for the price of 998.44. a) What is the

Suppose a 10 year, 1000.00 bond with a 7% coupon rate and semiannual coupons is trading for the price of 998.44.

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%, what will the bond's price be?

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