Essentials Of Investments
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Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Suppose a 10-year, $1,000 bond with a coupon rate of 8.8% and semiannual coupons is trading for $1,034.19.
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.)
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