Suppose a ten-year, $ 1000 bond with an 8.3 % coupon rate and semiannual coupons is trading
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Question:
Suppose a ten-year,
$ 1000
bond with an
8.3 %
coupon rate and semiannual coupons is trading for
$ 1035.64
.
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
9.2 %
APR, what will be the bond's price?
Expert Answer:
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