Suppose a ten-year,$1,000 bond with an 8.8%coupon rate and semiannual coupons is trading for$1,035.03.
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?
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 9.6 % APR, what will be the bond's price?The new price for the bond is___(Round to the nearest cent.)
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