Question: Suppose a ten - year $ 1 , 0 0 0 bond with an 8 . 5 % coupon rate and semiannual coupons is trading

Suppose a ten-year $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for $1,034.89.
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 9.8%APR, what will be the bond's price?

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