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Suppose a 10-year, $1,000 bond with a 12% coupon rate and semiannual coupons is trading for a price of $922.22. a. What is the bond's

Suppose a

10-year,

$1,000

bond with a

12%

coupon rate and semiannual coupons is trading for a price of

$922.22.

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

APR, what will the bond's price be?

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