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What is the bond yield to maturity

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Reference no: EM133003535

Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for a price of $1034.74.

a. What is the bond's yield to maturity (expressed as an Annual Percentage Rate (APR) with semiannual compounding)?

b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be?

c. Is this bond in case a & b trading at a discount, at par, or at a premium? Explain

Reference no: EM133003535

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