Question
Suppose a seven-year, $1,000 bond with a 9.52 % coupon rate and semiannual coupons is trading with a yield to maturity of 8.15 %. If
Suppose a seven-year, $1,000 bond with a 9.52 % coupon rate and semiannual coupons is trading with a yield to maturity of 8.15 %.
If the yield to maturity of the bond rises to 9.03 % (APR with semiannual compounding), at what price will the bond trade?
The bond will trade for $? (Round to two decimal places.)
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Handbook Of The Economics Of Finance
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
044459406X, 978-0444594068
