Suppose a ten year 1000 bond with a 8 coupon rate and


Suppose a ten year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $1103.93.

A) What is the bonds yield to maturity (expressed as an APR with semiannual compoudning)?

B) If the bonds yield to maturity changes to 9% APR, what will the bonds price be?

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Finance Basics: Suppose a ten year 1000 bond with a 8 coupon rate and
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