What would be the new price of the bond

Reference no: EM13269818

Apple has issued a 6% coupon rate bond that pays interest twice a year. The bond has a par value of $1000. The bond is due to mature on October 15, 2025. Compute the price of the bond (100=par) as of July 1, 2014 if the market requires a yield to maturity of 3.10%. If the market were to suddenly require the yield to rise to 3.50%, what would be the new price of the bond?

Reference no: EM13269818

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