Question
Suppose aten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for $1,034.42 . a. What is thebond's yield to maturity(expressed as
Suppose aten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for $1,034.42.
a. What is thebond's yield to maturity(expressed as an APR with semiannualcompounding)?
b. If thebond's yield to maturity changes to 9.5% APR, what will be thebond's price?
a. What is thebond's yield to maturity(expressed as an APR with semiannualcompounding)?
Thebond's yield to maturity is__%. (Round to two decimalplaces.)
b. If thebond's yield to maturity changes to 9.5% APR, what will be thebond's price?
The new price for the bond is $__(Round to the nearestcent.)
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
8th edition
134730364, 978-0134730363
