Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,034.24.

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 9.7% APR, what will be the bond's price?

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

The bond's yield to maturity is

nothing

%. (Round to two decimal places.)

b. If the bond's yield to maturity changes to 9.7% APR, what will be the bond's price?

The new price for the bond is $

nothing

. (Round to the nearest cent.)