a and b please **Bond Analysis and Yield Calculation**Suppose a ten-year, $1,000 bond with an 8.8% coupon rate and semiannual coupons is trading for $1,034.64.**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 9.3% APR, what will be the bond's price?***Note: No graphs or diagrams are present in the image.*

Time period = 10 year Coupon rate = 8.8% Selling price = $1,034.64

Answered: Suppose a ten-year, $1,000 bond with an…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

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Suppose a ten-year, $1,000 bond with an 8.8% coupon rate and semiannual coupons is trading for $1,034.64. 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 9.3% APR, what will be the bond's price?