Question: Suppose a seven-year, $ 1 , 0 0 0 bond with a 7 . 7 % coupon rate and semiannual coupons is trading with a

Suppose a seven-year,
$1,000
bond with
a
7.7%
coupon rate and semiannual coupons is trading with a yield to maturity of
6.37%.
b. If the yield to maturity of the bond rises to
7.14%
(APR with semiannual compounding), what price will the bond trade for?

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