Question
Suppose a ten-year, $ 1000 bond with an 8.9 % coupon rate and semiannual coupons is trading for $ 1034.66 a. What is the bond's
Suppose a ten-year, $ 1000 bond with an 8.9 % coupon rate and semiannual coupons is trading for $ 1034.66
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 9.3 % APR, what will be the bond's price?
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Public Finance And Public Policy
Authors: Arye L. Hillman
2nd Edition
0521738059, 978-0521738057
