Question
Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading for $1,034.31. a. What is the bond's yield to maturity
Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading for $1,034.31.
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 9.4% APR, what will be the bond's price?
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Financial Markets And Institutions
Authors: Stanley Eakins Frederic Mishkin
9th Global Edition
1292215003, 978-1292215006
