Question
Suppose a ten-year, $1,000 bond with an 8.6 % coupon rate and semiannual coupons is trading for $1,035.41. a. What is the bond's yield to
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Suppose a ten-year, $1,000 bond with an 8.6 % coupon rate and semiannual coupons is trading for $1,035.41.
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 9.6% APR, what will be the bond's price?
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Personal Finance
Authors: Jack Kapoor, Les R. Dlabay, Robert J. Hughes
2nd Edition
0256079056, 9780256079050
