Suppose a 10-year, $1,000 bond with a coupon rate of 8.9% and semiannual coupons is trading for $1,035.18.

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 9.4% APR, what will be the bond's price?

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Part 1

a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?

The bond's yield to maturity is:

(Round to two decimal places.)

Part 2

b. If the bond's yield to maturity changes to 9.4% APR, what will be the bond's price?

The new price for the bond is:

(Round to the nearest cent.)