Suppose a? ten-year, $1,000 bond with an 8.1% coupon rate and semiannual coupons is trading for $1,035.98.
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 9.9% ?APR, what will be the? bond's price?
The yield to maturity of a $1,000 bond with a 7.1% coupon? rate, semiannual? coupons, and two years to maturity is 7.9% APR, compounded semiannually. What is its?price?
For each of the following pairs of Treasury securities? (each with $1,000 par? value), identify which will have the higher? price:
a. A? three-year zero-coupon bond or a? five-year zero-coupon? bond?
b. A? three-year zero-coupon bond or a? three-year 4% coupon? bond?
c. A? two-year 5% coupon bond or a? two-year 6% coupon? bond?