Consider a bond with a life of 2 years, paying a coupon of 10% per annum with semiannual payments, and a yield of 5% per annum with semiannual compounding. (a) What is the bond’s price? (b) What is the bond's yield to maturity?
a) (a) $1,032.92; (b) 5%
b) (a) $1,050.33; (b) 5%
c) (a) $1,050.33; (b) 10%
d) (a) $1,032.92; (b) 10%