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Yield to maturity of the bond

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Reference no: EM132538198

Suppose a? seven-year, $1,000 bond with a 9.64% coupon rate and semiannual coupons is trading with a yield to maturity of 8.50%.

a. Is this bond currently trading at a? discount, at? par, or at a? premuim? Explain.

b. If the yield to maturity of the bond rises to 8.78% ?(APR with semiannual? compounding), at what price will the bond? trade?

Reference no: EM132538198

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