Solved: Suppose a ten-year 1000 bond with an 89 coupon rate and, Basic Statistics

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Suppose a ten-year 1000 bond with an 89 coupon rate and

i. Your company currently has $1,000 ?par, 6.5 % coupon bonds with 10 years to maturity and a price of $1,082. If you want to issue new? 10-year coupon bonds at? par, what coupon rate do you need to? set? Assume that for both? bonds, the next coupon payment is due in exactly six months.

ii. Suppose a? ten-year, $1,000 bond with an 8.9 % coupon rate and semiannual coupons is trading for $1,034.09.

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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Basic Statistics: Suppose a ten-year 1000 bond with an 89 coupon rate and

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Basic Statistics: Suppose a ten-year 1000 bond with an 89 coupon rate and

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