Question
Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and semiannual coupons is trading for $ 1035.72 . a. What is the
Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and semiannual coupons is trading for $ 1035.72
.
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 9.3 % APR, what will be the bond's price?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
