Suppose $a10-$year, $$1,000$ bond with $an8\mathrm{.}8\%$ coupon rate and semi$-$annual coupons $is$ trading for a price $of$

$$1,034\mathrm{.}67.$

$a.$ What $is$ the bond's yield $to$ maturity expressed $asan$ APR with semi$-$annual compounding?

$b.If$ the bond's yield $to$ maturity changes $to9\mathrm{.}8\%$ APR, what will the bond's price $be?$

$OF$

Question list

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Question $7$

$a.$ What $is$ the bond's yield $to$ maturity expressed $asan$ APR with semi$-$annual compounding?

The bond's yield $to$ maturity $is8\mathrm{.}28\%.$ Round $to$ two decimal places.

$b.If$ the bond's yield $to$ maturity changes $to9\mathrm{.}8\%$ APR, what will the bond's price $be?$

The new price for the bond will $be$ $ $937\mathrm{.}16.$ Round $to$ the nearest cent.