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Suppose a ten-year, $ 1 , 0 0 0 bond with an 8 . 6 % coupon rate and semiannual coupons is trading for $
Suppose a ten-year,
$1,000
bond with an 8.6%
coupon rate and semiannual coupons is trading for $1,034.83.
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
9.7%
APR, what will be the bond's price? Step by Step Solution
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The Finance Book
Authors: Stuart Warner, Si Hussain
1st Edition
1292123648, 978-1292123646
