I need help with the following questions and I also need to see the steps and formulas
Fantastic news! We've Found the answer you've been seeking!
Question:
I need help with the following questions and I also need to see the steps and formulas included for the answer. Question 2 has two parts(parts a and b)
Question 1: The yield to maturity of a $1000 bond with a 7.2 % coupon rate, semi-annual coupons, and two years to maturity is 8.8 % APR, compounded semi-annually. What must its price be?
Question 2: Suppose a 10-year, $1000 bond with an 8.2 % coupon rate and semi-annual coupons is trading for a price of $1035.87
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 9.5 %APR, what will the bond's price be?
Posted Date: