Question

Suppose a ten-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading for $1,035.08.

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?

Answer #1

a)

b)

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...

Suppose a ten-year, $1,000 bond with an 8.5 % coupon rate and
semiannual coupons is trading for $1,035.81.
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 9.2 % APR, what
will be the bond's price?

Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and
semiannual coupons is trading for $1,035.05.
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 9.4% APR, what
will be the bond's price?

Suppose a ten-year, $1,000 bond with an 8.3% coupon rate and
semiannual coupons is trading for $1,035.74.
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 9.6% APR, what
will be the bond's price?

Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and
semiannual coupons is trading for $1,034.44.
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 9.6% APR, what
will be the bond's price?

Suppose a ten-year, $1,000 bond with an 8.1 % coupon rate and
semiannual coupons is trading for $ 1,034.88
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?

Suppose a ten-year,
$ 1 comma 000$1,000
bond with an
8.2 %8.2%
coupon rate and semiannual coupons is trading for
$ 1 comma 034.97$1,034.97.
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
9.2 %9.2%
APR, what will be the bond's price?

Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and
semiannual coupons is trading for $1,035.45.
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 9.2% 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...

Suppose a ten-year, $ 1,000 bond with an 8.9 % coupon rate and
semiannual coupons is trading for $ 1,034.56
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 9.9 % APR, what
will be the bond's price?

Suppose a ten-year, $ 1,000 bond with an 8.6 % coupon rate and
semiannual coupons is trading for $ 1,034.39.
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?

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