What is the bond yield to maturity

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1. Suppose a ten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for $1,034.63. 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 9.5% APR, what will be the bond's price?

2. Achi Corp. has preferred stock with an annual dividend of $2.92. If the required return on Achi's preferred stock is 7.8% , what is its price? ( Hint: For a preferred stock, the dividend growth rate is zero.)

Reference no: EM131873877

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