Question
Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and semiannual coupons is trading for $1,034.64. 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 $1,034.64.
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?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th International Edition
1259094901, 9781259094903
