Suppose a​ ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for $1,034.75. 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 9.5% ​APR, what will be the​ bond's price?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Suppose a​ ten-year, $1,000 bond with an 8.5%
coupon rate and semiannual coupons is trading for $1,034.75.
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
9.5%
​APR, what will be the​ bond's price?
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