Question
Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for $1034.74. a. What is the bonds yield to maturity
- Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for $1034.74.
a. What is the bonds yield to maturity (expressed as an APR with semiannual compounding)?
b. If the bonds yield to maturity changes to 9% APR, what will the bonds price be?
c. If the bonds yield to maturity changes to 6%, what will the bonds price be?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
