Question
Suppose a ten-year, $ 1,000 bond with an 8.5 % coupon rate and semiannual coupons is trading for $ 1,035.23. a. What is the bond's
Suppose a ten-year, $ 1,000 bond with an 8.5 % coupon rate and semiannual coupons is trading for $ 1,035.23. 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?
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Advanced Finance
Authors: Michael Fardon
1st Edition
1872962319, 1872962173, 978-1872962313, 978-1872962177
