Question
In: Finance
Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and semiannual coupons is...
Suppose a ten-year,
$ 1000 bond with an
8.5 % coupon rate and semiannual coupons is trading for
$ 1034.55
.
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
9.9 %
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
What is the new price of the bond? _____________
Solutions
Expert Solution
a. Bonds Yield to maturity = YTM with semi annual Period * 2
Bonds Yield to maturity = 3.995 * 2
Bonds Yield to maturity = 7.99%
b.Bond Price when YTM is 9.90% = $912.39
jeff jeffy answered 1 year agoRelated Solutions
Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and semiannual coupons is...
Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and
semiannual coupons is trading for $ 1035.41.
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
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Suppose a ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for...
Suppose a ten-year,
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a. What is the bond's yield to maturity (expressed as an APR
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b. If the bond's yield to maturity changes to
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Suppose a ten-year, $ 1,000 bond with an 8.1 % coupon rate and semiannual coupons is...
Suppose a ten-year, $ 1,000 bond with an 8.1 % coupon rate and
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Suppose a ten-year, $ 1,000 bond with an 8.7 % coupon rate and semiannual coupons is...
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Suppose a ten-year, $ 1 comma $1,000 bond with an 8.5 % coupon rate and semiannual...
Suppose a ten-year, $ 1 comma $1,000 bond with an 8.5 % coupon
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b. If the bond's yield to maturity changes to 9.8% APR, what
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Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and
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