Question
Suppose a 10-year, $1,000 bond with a 9% coupon rate and semiannual coupons is trading for a price of $991.43. a. What is thebond's yield
Suppose a 10-year, $1,000 bond with a 9% coupon rate and semiannual coupons is trading for a price of $991.43.
a. What is thebond's yield to maturity(expressed as an APR with semiannualcompounding)?
b. If thebond's yield to maturity changes to 9% APR, what will thebond's pricebe?
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
