Question
Suppose a ten-year, $ 1,000 bond with an 8.9 % coupon rate and semiannual coupons is trading for $ 1,034.56 a. What is the bond's
Suppose a ten-year, $ 1,000 bond with an 8.9 % coupon rate and semiannual coupons is trading for $ 1,034.56
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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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
8th Edition
007322359X, 9780073223599
