Suppose a ten-year 1000 bond with an 81 coupon rate and


Suppose a ten-year, $1,000 bond with an 8.1% coupon rate and semi-annual coupons is trading for $1,034.69

A. What is the bond's yield to maturity(expressed an an APR with semi-annual compounding)?

B. If the bond's yield to maturity changes to 9.6% APR, what will be the bond's price?

 

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Finance Basics: Suppose a ten-year 1000 bond with an 81 coupon rate and
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