Question: PLEASE ANSWER ASAP Suppose a 10 -year, $1,000 bond with an 8.9% coupon rate and semi-annual coupons is trading for a price of $1,035.82. a.


Suppose a 10 -year, $1,000 bond with an 8.9% coupon rate and semi-annual coupons is trading for a price of $1,035.82. 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 9.8% APR, what will the bond's price be? a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? The bond's yield to maturity is %. (Round to two decimal places.) Your company wants to raise $8.5 million by issuing 30 -year zero-coupon bonds. If the yield to maturity on the bonds will be 8% (EAR), what total face value amount of bonds must you issue? The total face value amount of bonds that you must issue is $ (Round to the nearest cent.) Suppose a seven-year, $1,000 bond with an 8.2% coupon rate and semi-annual coupons is trading with a yield to maturity of 6.74%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.28% (APR with semi-annual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) A. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. B. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. C. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. D. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium
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