Question
Suppose a ten-year, $1,000 bond with an 8.8% coupon rate and semiannual coupons is trading for $1,035.64 . a. What is the bond's yield to
Suppose a ten-year,$1,000 bond with an 8.8% coupon rate and semiannual coupons is trading for $1,035.64.
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 9.9 % APR, what will be the bond's price?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
