Suppose a ten-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading for $1,035.92.
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 9.1% APR, what will be the bond's price?
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
The bond's yield to maturity is __%.
(Round to two decimal places.)
b. If the bond's yield to maturity changes to 9.1% APR, what will be the bond's price?
The new price for the bond is $__
(Round to the nearest cent.)
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