Suppose a ten-year, $ 1,000 bond with an 8.6 % coupon rate and semiannual coupons is trading for $ 1,035.77.
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?
Get Answers For Free
Most questions answered within 1 hours.