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Suppose a ten-year, $1,000 bond with an 8.1% coupon rate and semiannual coupons is trading for $1,034.71. a. What is the bond's yield to maturity

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Suppose a ten-year, $1,000 bond with an 8.1% coupon rate and semiannual coupons is trading for $1,034.71. 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% APR, what will be the bond's price? A BBB-rated corporate bond has a yield to maturity of 8.8%. A U.S. Treasury security has a yield to maturity of 7.1%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 8.1% and have five years to maturity. a. What is the price (expressed as a percentage of the face value) of the Treasury bond? b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? c. What is the credit spread on the BBB bonds

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