Suppose a ten-year,

$1,000

bond with an

8.5%

coupon rate and semiannual coupons is trading for

$1,035.78.

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. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?

The bond's yield to maturity is

nothing%.

(Round to two decimal places.)b. If the bond's yield to maturity changes to

9.5%

APR, what will be the bond's price?The new price for the bond is

$nothing.

(Round to the nearest cent.)