Question: Suppose a 1 0 - year, $ 1 , 0 0 0 bond with an 8 . 5 % coupon rate and semi - annual

Suppose a 10-year, $1,000 bond with an 8.5% coupon rate and semi-annual coupons is trading for a price of $1,035.18.
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?
Suppose a 10-year, $1,000 bond with an 8.5% coupon rate and

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