Question

Suppose a 10-year, $1,000 bond with an 8% coupon rate and semiannual coupons is trading for...

Suppose a 10-year, $1,000 bond with an 8% coupon rate and semiannual coupons is trading for $1,034.74.

A: What is the bond’s yield to maturity (expressed as an APR with semiannual compounding)? Coupon? Number of periods? Yield to Maturity?

B: If the bond’s yield to maturity changes to 9% APR, what will the bond’s price be? Semi-annual yield? Bond Price?

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