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

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 to maturity changes to 9.2% APR, what will be the bond's price?
The new price for the bond is $_____ (Round to the nearest cent.)
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