Second Try

Suppose a $10-$year, $ $1,000$ bond with an $8\%$ coupon rate and semiannual coupons is trading for a price of $ $1,044\mathrm{.}89.$

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

b$.$ If the$$ bond's yield to maturity changes to $10\%$APR$,$ what will the$$ bond's price$$ be$?$

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

The YTM is $\_\_\_\_$ enter your response here$\%.($Round to two decimal$$ places.$)$

NPER RATE PV PMT FV Excel Formula

Given $20-1,044\mathrm{.}8940\mathrm{.}001,000$

Solve for Rate $7\mathrm{.}358\%=$RATE$(,40,-986/98,1000)$

b$.$ If the$$ bond's yield to maturity changes to $10\%$APR$,$ what will the$$ bond's price$$ be$?$

The price is $$$ $\_\_\_$ enter your response here. $($Round to the nearest$$ cent.$)$