Question
Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $910.81. a. What is thebond's yield
Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $910.81.
a. What is thebond's yield to maturity(expressed as an APR with semiannualcompounding)?
b. If thebond's yield to maturity changes to 8% APR, what will thebond's pricebe?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
