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Suppose a 10-year, $1000 bond with an 5% coupon rate and semiannual coupons is trading for a price of $1125.646 a.What is the bonds yield
Suppose a 10-year, $1000 bond with an 5% coupon rate and semiannual coupons is trading for a price of $1125.646
a.What is the bonds yield to maturity (expressed as an APR with semiannual compounding)?
b.If the bonds yield to maturity changes to 6% APR, what will the bonds price be?
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