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Suppose a 10-year, $ 1 comma 000$1,000 bond with an 8.9 %8.9% coupon rate and semi-annual coupons is trading for a price of $1 comma

Suppose a 10-year,

$ 1 comma 000$1,000

bond with an

8.9 %8.9%

coupon rate and semi-annual coupons is trading for a price of

$1 comma 035.341,035.34.

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

9.4 %9.4%

APR, what will the bond's price be

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