Question
Suppose a ten-year, $ 1 comma 000$1,000 bond with an 8.6 %8.6% coupon rate and semiannual coupons is trading for $ 1 comma 035.67$1,035.67. a.
Suppose a ten-year,
$ 1 comma 000$1,000
bond with an
8.6 %8.6%
coupon rate and semiannual coupons is trading for
$ 1 comma 035.67$1,035.67.
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
9.8 %9.8%
APR, what will be the bond's price?
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Case Studies In Finance
Authors: Robert Bruner, Kenneth Eades, Michael Schill
6th Edition
0073382450, 978-0073382456
