Suppose a ten-year,

$ 1 comma 000$1,000

bond with an

8.1 %8.1%

coupon rate and semiannual coupons is trading for

$ 1 comma 035.59$1,035.59.

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

9.5 %9.5%

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