Question
Suppose a ten-year, $ 1 comma 000$1,000 bond with an 8.0 %8.0% coupon rate and semiannual coupons is trading for $ 1 comma 034.74$1,034.74. a.
Suppose a ten-year,
$ 1 comma 000$1,000
bond with an
8.0 %8.0%
coupon rate and semiannual coupons is trading for
$ 1 comma 034.74$1,034.74.
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
9.0 %9.0%
APR, what will be the bond's price?
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
The bond's yield to maturity is
nothing%.
(Round to two decimal places.)
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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
