Suppose a 10-year 1000 bond with an 8 coupon rate and


Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for a price of $1034.74. 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% APR, what will the bond’s price be?

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Operation Management: Suppose a 10-year 1000 bond with an 8 coupon rate and
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