Question

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

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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