Finance Assignment | Professional Writing
June 8th, 2020
Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and semiannual coupons is trading for $1,034.33 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 9.3% APR, what will be the bond’s price?
a. What is the bond’s yield to maturity (expressed as an APR with semiannual compounding)? The bond’s yield to maturity is %. (Round to two decimal places.) b. If the bond’s yield to maturity changes to 9.3% APR, what will be the bond’s price? The new price for the bond is S . (Round to the nearest cent) Enter your answer in each of the answer boxes.
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