Question
Suppose a 10-year, $1,000 bond with a 11% coupon rate and semiannual coupons is trading for a price of $1,012.81. a. What is the bond's
Suppose a 10-year, $1,000 bond with a 11% coupon rate and semiannual coupons is trading for a price of $1,012.81.
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 10% APR, what will the bond's price be?
a. The YTM is 10.79%. (Round to two decimal places.)
b. If the bond's yield to maturity changes to 10% APR, what will the bond's price be?
The price is $_____________. (Round to the nearest cent.)
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International Financial Management
Authors: Jeff Madura
7th Edition
0324071744, 978-0324071740
