Suppose a ten-year,

$1,000

bond with an

8.9%

coupon rate and semiannual coupons is trading for

$1,034.29.

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

9.6%

APR, what will be the bond's price?

Question content area bottom

Part 1

a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?

The bond's yield to maturity is

enter your response here%.

(Round to two decimal places.)

Part 2

b. If the bond's yield to maturity changes to

9.6%

APR, what will be the bond's price?The new price for the bond is

$enter your response here.

(Round to the nearest cent.)