Question
Suppose a ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for $1,034.99. a. What is the bond's yield to maturity
Suppose a ten-year,
$1,000
bond with an
8.5%
coupon rate and semiannual coupons is trading for
$1,034.99.
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
9.7%
APR, what will be the bond's price?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
2nd Edition
0324117752, 9780324117752
