Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and semiannual coupons is trading for $ 1035.41.
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 9.1 % APR, what will be the bond's price?