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Suppose a 10-year, $1000 bond with an 8% coupon ra...

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Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for a price of $1034.74. 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% APR, what will the bond?s price be?

 

Paper#10139 | Written in 18-Jul-2015

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