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What is the bond yield to maturity

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Reference no: EM132540970

Suppose a 10-year, $1000 bond with an 8% coupon rate and semi-annual coupons is trading for a price of $1034.74.

a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)?

b. If the bond's yield to maturity changes to 9% APR, what will be the bond's price?

Reference no: EM132540970

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