Question

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?

Answer #1

Suppose a ten-year, $ 1,000 bond with an 8.6 % coupon rate and
semiannual coupons is trading for $ 1035.31.
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 8.6 % 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?

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 8.9 % 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 8.5 % 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 8.3% 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 8.2% 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?

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, $1,000 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...

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