Suppose a

$1010-$year,

$$$$1$ comma $0001,000$

bond with a coupon rate of

$8\mathrm{.}5\%8\mathrm{.}5\%$

and semiannual coupons is trading for

$$$$1$ comma $034\mathrm{.}241,034\mathrm{.}24.$

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

$9\mathrm{.}9\%9\mathrm{.}9\%$

$$APR$,$ what will be the$$ bond's price?

Question content area bottom

Part $1$

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

The$$ bond's yield to maturity is

$8\mathrm{.}008\mathrm{.}00\%.$

$($Round to two decimal$$ places.$)$

Part $2$

b$.$ If the$$ bond's yield to maturity changes to

$9\mathrm{.}9\%9\mathrm{.}9\%$

$$APR$,$ what will be the$$ bond's price?

The new price for the bond is

$$$enter your response here.

$($Round to the nearest$$ cent.$)$