suppose a seven-year, $1000 bond with a 7.9% coupon rate and semiannual coupons is trading with...

suppose a seven-year, $1000 bond with a 7.9% coupon rate and semiannual coupons is trading with a yield to maturity of 6.33%

if the yield to maturity of the bond rises to 7.29% (APR with semiannual compounding), what price will the bond trade for?

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used. If you need with financial formula, let me know, will do that also. Thank you.

As nothing is mentioned, we assume that YTM has increased immediately.

jeff jeffy answered 1 day ago

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