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Homework answers / question archive / Suppose a? 10-year, $1,000 bond with an 8

Suppose a? 10-year, $1,000 bond with an 8

Finance

Suppose a? 10-year, $1,000 bond with an 8.7% coupon rate and? semi-annual coupons is trading for a price of ?$1,034.58.

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

b) If the? bond's yield to maturity changes to 9.3% ?APR, what will the? bond's price? be?

Option 1

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