[Solved] Suppose a ten-year, $1,000 bond with an 8

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Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and semiannual coupons is trading for $1,035.35. 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

$1,035.35.

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

9.8%

APR, what will be the bond's price?

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