Question
Suppose a 10-year, $1,000 bond with an 8.8% coupon rate and semi-annual coupons is trading for a price of $1,035.12. a. What is the bond's
Suppose a 10-year, $1,000 bond with an 8.8% coupon rate and semi-annual coupons is trading for a price of $1,035.12.
a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)?
b. If the bond's yield to maturity changes to 9.6% APR, what will the bond's price be?
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Small Business Finance And Valuation
Authors: Rick Nason, Dan Nordqvist
1st Edition
1952538122, 9781952538124
