Question
Suppose a 10-year, $1,000 bond with a 9% coupon rate and semiannual coupons is trading for a price of $1,181.82. a. What is the bond's
Suppose a 10-year, $1,000 bond with a 9% coupon rate and semiannual coupons is trading for a price of $1,181.82.
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 8% APR, what will the bond's price be?
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Microeconomics: An Intuitive Approach With Calculus
Authors: Thomas Nechyba
2nd Edition
1305650468, 978-1305650466
