Question
Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and semiannual coupons is trading for $1,034.24. a. What is the bond's yield to maturity
Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and semiannual coupons is trading for $1,034.24.
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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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
