Question
Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and semiannual coupons is trading for $1,035.45. 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
$1,035.45.
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
9.2%
APR, what will be the bond's price?
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American Public School Finance
Authors: William Owings, Leslie Kaplan
2nd Edition
1111838046, 978-1111838041
