Question
Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,034.92. *Can you show the work as to how
Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,034.92.
*Can you show the work as to how you get coupon payment?
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 9.5% APR, what will be the bond's price?
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Finance Applications And Theory
Authors: Marcia Millon Cornett, John R. Nofsinger, Troy Adair
3rd International Edition
1259252221, 9781259252228
