Suppose a? ten-year,
$1,000
bond with an
8.5%
coupon rate and semiannual coupons is trading for
$1,034.99.
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 9.7% ?APR, what will be the? bond's price?