In: Finance
Suppose a 10-year, $ 1,000 bond with a 10 % coupon rate and semiannual coupons is trading for a price of $906.44
.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 to8 %APR, what will the bond's price be?
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As nothing was mentioned excel is used.