Question
Suppose a ten-year, $1,000 bond with an 8.7 % coupon rate and semiannual coupons is trading for $1,035.98. a. What is the bond's yield to
Suppose a ten-year,
$1,000
bond with an
8.7 %
coupon rate and semiannual coupons is trading for
$1,035.98.
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
9.1 %
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
8.16%.
(Round to two decimal places.)
b. If the bond's yield to maturity changes to 9.1 %
APR, what will be the bond's price?
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F For Quantitative Finance
Authors: Johan Astborg
1st Edition
1782164626, 978-1782164623
