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Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading...

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Finance

Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading for $1,035.09.

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 9.2% APR, what will be the bond's price?

Part 1

a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?

The bond's yield to maturity is

enter your response here%.

(Round to two decimal places.)

Answer & Explanation Solved by verified expert
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