Question
Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,034.02. a. What is the bond's yield to maturity
Suppose a ten-year,
$1,000
bond with an
8.9%
coupon rate and semiannual coupons is trading for
$1,034.02.
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
9.8%
APR, what will be the bond's price?
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Fundamentals Of Financial Planning
Authors: Michael A Dalton, Joseph Gillice
3rd Edition
1936602091, 9781936602094
