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The bond yield to maturity changes

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Reference no: EM131880337

Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,035.55.

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 9.7 % APR, what will be the bond's price?

Reference no: EM131880337

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